A Study On Some Legal Questions Of Factoring Contract In Civil Trial Practice

The factoring contract is that the creditor of accounts receivable transfers the accounts receivable to the factoring agent,the factoring agent provides services to the creditor,the services include circulation of commodities,accounts receivables management or collection,the payment guarantee etc.Factoring contract is a new type of contract,which is not stipulated in our country.Because of the different understanding of the factoring contract legal relationship in judicial practice,there is a lack of judgement standards.There are great differences in the judgment results of factoring contract disputes.First,if the creditors claim rights from both creditors and debtors when their rights of accounts receivable cannot be realized,there will be concurrence of claims.Based on the fact that the factoring contract is a compound contract with accounts receivable as the core,we should give relief from two aspects of entity and procedure in the case of a factoring firm exercise two claims at the same time.Secondly,the debtor shall be notified when accounts were transferred.However,as to whether the factoring firm can be the notification subject of the assignment of creditor's rights,there are differences in practice.Article 80 of Contract Law only exclude when the creditor assigns its rights,it shall notify the obligor.But there is no provision for who should give notice.So,the factoring agent shall be allowed to perform the notification obligation;Third,there will be conflicts of rights when the creditor transfers the same account receivable many times or pledge the account at the same time.The most important reason is that the transfer of accounts receivable does not have obvious right appearance,the registration of transfer of creditor's rights does not have the same legal effect as the registration of pledge.The best way to solve the problem is to definite the principle of "priority of registration",then determine the ownership of creditor's rights according to the order of registration.It can also protect the interests of the pledgee in good faith according to the Bona Fide Acquisition;Fourth,if the accounts receivable involved in the factoring contract are false,the validity of factoring contract should be determined strictly according to the Contract Law.It is not necessary to invalidate the factoring contract when the accounts receivable are false.In practice,we should emphasize the authenticity check of basic transaction contracts and accounts receivable,handle the relationship between false accounts receivable and the effect of factoring contract correctly,we should also identify the debtor's responsibility correctly.This paper combines the relevant clauses of factoring contract in China's Civil Code,make further analysis and discussion on the issues from my own perspective.It deepens our understanding of the legal relationship of factoring contracts.This paper puts forward some general countermeasures on how to deal with the disputes in judicial practice.