The Rule Of Buyer In Ordinary Course Of Business

The civil code has carried out systematic reform on the relevant system of Chattel Security,expanded the scope of application of the rule of buyer in ordinary course of business.It is reasonable to apply the rule in all fields of chattel mortgage.The institutional basis of the rule of buyer in ordinary course of business lies in the protection of the reasonable trust of the buyer.This rule should not be limited to trading activities,as long as they can maintain the normal trading behavior of the mortgagor and do not damage the secured interests of the mortgagee,including the trading behavior,mutual exchange behavior,leasing behavior and use behavior,etc.,all belong to normal business activities.The requirements for reasonable price should be refined according to the nature of the subject matter transferred,and different standards should be applied to distinguish the specific movable property and the non specific movable property.The requirements of"paid" reasonable price shall be limited and applied.The medium of payment shall not be limited to money,and other alternative ways of money may also be applied.The real delivery,simple delivery,instruction delivery and possession modification can all be the way to obtain the mortgaged property.The buyer’s subjective goodwill is divided into two levels with progressive relationship.As long as one of them is satisfied,the normal operation buyer rules can be applied.In addition to the case of multiple transfer of one thing and mortgage,the rule of buyer in ordinary course of business can be applied in the retention of ownership and financial leasing.Article 403,404 and 406 of the civil code are systematic and coordinate,which together constitute a regulatory group that limits the transfer of chattel mortgage.