Research On The Legal Application Of The Right To Rescind The Equity Transfer Contract With Installment Payment

Installment payment,as a widely applicable transaction method in the context of commercial transactions,has been widely used in equity transfer contracts.For installment payment equity transfer contracts,the lack of legislation has also led to different courts in judicial practice making different judgments in the trial of such contract disputes.In order to maintain the unity of judicial judgment,in Guiding Case No.67,the Supreme People’s Court determined that the installment payment contract for equity transfer does not apply to the installment payment contract rescission system.This article will,through the following four chapters,analyze the reasons for the Supreme People’s Court Guiding Case No.67,and explore whether the rescission of the installment payment equity transfer contract can refer to the applicable installment sales contract rescission system.The first chapter summarizes the focus of this case by briefly describing the basic facts of Guiding Case No.67 and analyzing the trial results of courts at all levels.At the same time,a brief analysis is made on the status quo of judicial decisions after the release of Guiding Case No.67.The second chapter mainly starts from the premise of the termination of the equity transfer contract,and points out that the Supreme People’s Court Guiding Case No.67 proposes to limit the installment payment on the grounds of safeguarding the legal interests of the Company Law of the People’s Republic of China(hereinafter referred to as the "Company Law").The reasons for the rescission of the assignment contract are inconsistent with the applicable system for determining the validity of the contract,and an in-depth analysis of its inherent flaws is made.Secondly,based on the particularity of the installment equity transfer contract,through the analysis of the delivery of the subject matter,the delivery behavior and the legal consequences of the termination of the contract,the characteristics of the contract are accurately defined.The third chapter is based on the supplementary analysis and demonstration of the exercising conditions,scope of application and the seller’s right relief method of the installment payment sales contract rescission system,and then compares and analyzes the similarities and differences between the installment payment equity transfer contract and the installment payment sales contract,draws the conclusion that the contract rescission system of the two can be applied by reference,and puts forward corresponding rules for the reference application of the installment equity transfer contract.The fourth chapter,by pointing out the shortcomings of the current installment payment equity transfer system at the legislative and judicial levels,clarifies and perfects the "Company Law" and the "Civil Code of the People’s Republic of China"(hereinafter referred to as the "Civil Code")contract compilation.The relevant provisions of the installment equity transfer contract and the rescission system put forward legislative suggestions,and at the same time put forward judicial suggestions on the maintenance of the legal interests involved in the installment equity transfer contract and the correct application of reference to the applicable rules to fill the legal loopholes.