A Study On The Effectiveness Of Liquid Contracts

There have been many theoretical controversies in the academic circle about the validity of fluidity contracts,and the phenomenon of "same case but different judgment" is not uncommon in judicial practice.In practice,fluidity contracts are mostly intertwined with the transferring guarantee and the paying-a-debt-in-kind-assets.With the economic development and social transformation,many views on prohibiting fluidity contracts in the past lack corresponding solid foundation supports.Out of the requirements of private law autonomy and coordination of the legal system,calls for lifting the ban on fluidity are increasing.From the perspective of comparative law,whether it is the consistent licensing attitude of the common law system or the softening and loosening of the civil law system,the validity easing of liquid contracts seems to be the general trend.Through the Article 428 of the Civil Code,the attitude of legislators towards liquid contracts has be softened.Combining current judicial practice and investigating the legislative design of various regions,we should make corresponding special settings while easing the validity of fluidity contracts to conform to the current reality of our country.Specifically,from the legislative level,the relevant provisions of the Civil Code should be explained and analyzed.The validity of the liquid contract shall be determined by the dichotomy of the main contract.At the same time,the rules of ownership determination should also follow the original civil law system,as well as establishing a unified registration and publicity system of movable property and rights guarantee.Secondly,in judicial practice,the validity of fluidity contract,paying-a-debt-in-kind-assets and transferring guarantee should be specifically identified.In addition,certain interpretation methods should be used to rationally explain the content of the relevant provisions.on the premise of balancing the amount of creditor's rights and the value of the collateral,the liquidating method should be incorporated into the construction of the security right system.