The Study On The Effectiveness Of Cash Compensation Clauses In Gambling Agreements

In recent years,with the development of China’s capital market,private equity investment,as a new way of investment,plays an increasingly important role in the operation of China’s capital market.Because of the particularity of the betting agreement,investors and financiers often cause huge losses and serious consequences in the game because of information asymmetry and market risk.Cash compensation clause is one of the important clauses when the parties apply the gambling agreement.When the gambling purpose agreed by the two sides can not be achieved,this is also the most direct way for the target company and its original shareholders to compensate investors.However,in judicial practice,due to the lag of the legal system,a large number of gaps have arisen in the relevant fields,which makes the settlement of disputes and disputes more difficult.On this basis,this paper will focus on the cash compensation clauses signed between the target company and investors.Firstly,starting with the definition of the meaning of cash compensation clause,combining with the different attitudes of courts and arbitration institutions to the validity of cash compensation clause in judicial practice,this paper analyses the cash compensation clause,finds that there are legal disputes about the cash compensation clause in the gambling agreement,and then deduces the essence of the cash compensation clause.Secondly,by comparing the similarities and differences between cash compensation clause and conditional validity contract,fortune shooting contract,loan contract and option contract,the legal attributes of cash compensation clause are analyzed,and the characteristics of cash compensation clause are clarified.Finally,this paper analyses the rationality and feasibility of the cash compensation clause from multiple perspectives.From legislation to justice,from theory to practice,it puts forward feasible suggestions to improve the legal regulation of the cash compensation clause.In the first part,the author raises questions,studies the current situation of research on this topic at home and abroad,and makes no clear legal attributes of the gambling agreement,nor expressly stipulates the validity of the cash compensation clause.There are gaps in theory and practice,so it is particularly important to regulate it.This paper establishes the research ideas,methods and innovative points.The second part,starting with the analysis of the legislative status and typical cases in judicial practice,finds out the application status of the cash compensation clause,and finds out the disputes in the case.Due to the lack of legislation,there are many disputes in theory and practice,and summarizes the existing problems.The third part clarifies the legal attributes of the cash compensation clause and distinguishes its confusing concepts.Typical induction makes it easier for gamblers to "prescribe the right remedy to the right situation".It evaluates the existing theories,expresses its own views,and states the valid and reasonable reasons for the cash compensation clause.The fourth part,based on multi-dimensional and multi-level research and demonstration,combined with empirical research,provides suggestions for the regulation of cash compensation clauses.