Research On The Buyer's Rules For Normal Operation Of Chattel Mortgag

Article 404 of the Civil Code raises the Rules for Normal Business Buyers from the supporting system of floating charge of movable property to the general rules of chattel mortgage,which exempts the buyer of movable property from registration and inquiry and improves the efficiency of transactions.It has a certain impact on the original chattel mortgage system.In order to clarify the scope of application of the Rules for Normal Business Buyers,it is necessary to link it with Article 403 Chattel Mortgage Registration Antagonism Rule and Article 406 Mortgage Transfer Rule of the Civil Code,and correctly understand the premise,constitutive elements and application results of the rules,so as to make the Rules for Normal Business Buyers self-consistent in internal logic and compatible with the external system.The scope of application of the Rules for Normal Business Buyers is "chattel mortgage".Chattel mortgage originated in Roman and played an indispensable role in promoting financing and improving market vitality,so it was absorbed by the civil law of our country.Article 404 of Civil Code forms a complete system with articles 403 and 406 regarding the transfer of mortgages.Article 406 applies to the transfer of mortgages over immovable property.In the case of chattel mortgages,Article 403 or Article 404 applies differently depending on the registration and the subjective state of the buyer.The premise of the application of the Rules for Normal Business Buyers is "normal business activities".Combined with the provisions of Article 56 of the Interpretation of the Guarantee System of the Supreme People’s Court,it is clear that subject of normal business activities should be the seller.In addition,the mortgaged movable property of the seller should be classified.The inventory and production equipment,physical property and intangible property should be distinguished according to the value,function and selling purpose of the property in the specific subject.Finally,it is clear that transaction between the mortgagor and the buyer should be legal,and there is inherent consistency with the daily mode of operation of the mortgagor.The constitutive elements of the Rules for Normal Business Buyers are that "reasonable price has been paid and mortgaged property has been obtained".The determination of "reasonable price" can refer to the explanation of "reasonable price" of the system of Good Faith Acquisition by the Supreme people’s Court."Paid" should be specifically determined in the light of whether the subject matter is a specific object or a category,divisible or inseparable.It is clear that "mortgaged property has been obtained" should be to obtain the ownership of the mortgaged property rather than possession,and the buyer can obtain the ownership of the mortgaged property by means of possession modification.Finally,whether the buyer is required to hold the state of subjective goodwill should be negated,the applicable elements of the rule should be strictly limited to the objective elements extended by the normative expression,and the subjective state of the buyer should not be investigated.Therefore,the provisions of Article 56 of the Interpretation of the Guarantee System of the Supreme People’s Court fail to exempt the buyer from the obligation of inquiry should be abandoned.The result of the application of the Rules for Normal Business Buyers is "no confrontation".The mortgagee cannot confront does not mean that the mortgage right is eliminated,but,but means that the recourse and effect of the mortgage are blocked,so that the buyer has no mortgage burden.Therefore,the normal business buyers can confront a lot mortgagees,including chattel floating mortgagee and general chattel mortgagee.