Study On The Application Of The Rules On Notice Of Assignment Of Claims In Factoring Contracts

Factoring is a modern financial business that is adapted to the current trends of international economic development.Modern factoring was developed in the United States,then entered Europe,and finally came to Asia,which is mainly export-oriented,and the factoring business has been developed for only a hundred years.Factoring is a complex business integrating accounts receivable transfer,financing and credit guarantee,etc.Its core is accounts receivable transfer,and the notice of claim assignment is the core of accounts receivable transfer.Notice of assignment of claims can balance the interests of the creditor,factor and debtor,and can also affect the interests of third parties other than the debtor.When an assignment of claims occurs,it can only be effective for the debtor if it is notified.Regarding the application of the notice of assignment of claims in factoring contract,there are no clear regulations on the subject,manner,content and time of the notice in China’s laws,which leads to the defects in the effectiveness of the notice of assignment of claims in the process of application.In view of the fragmented discussion on the system of notice of assignment of claims in China,this paper attempts to explore the legal issue of how to apply the notice of assignment of claims in factoring contracts from the actual situation in China,and to explain and improve its problems by combining the relevant views from the theoretical and practical circles at home and abroad.This thesis is divided into four parts,except for the introduction.The first part discusses the types and nature of factoring contracts.Firstly,it is explained that factoring contracts can be divided into various types according to different criteria,among which factoring with recourse and non-recourse factoring are the most recognized and commonly used classification criteria in the present day factoring practice.Secondly,a comparative analysis of various doctrines on the nature of factoring contracts is presented,and on the basis of the comparative doctrines,it is proposed that the nature of factoring contracts should be a claim assignment guarantee,which leads to the conclusion that the claim assignment notice rule can be applied in factoring contracts.The second part discusses the composition of the notice of assignment in factoring contracts.Firstly,through the doctrine and legislative examples combined with the factoring time,it is concluded that both the assignor and the assignee can be the subject of the notice of assignment of claims.Secondly,by analyzing the different forms of notice appearing in factoring contracts,it is concluded that,in addition to the traditional oral and written forms,public notice,litigation,and confirmation of other documents can be forms of notice,but the registration method does not produce the effect of notice in principle.Thirdly,it is argued that the content of the notice of assignment should have three elements,i.e.,the receivables are specific,the receivables are genuine and the receivables are assignable.Finally,the doubts concentrated in factoring contracts regarding the time of notice of assignment are sorted out.The third part discusses the effect of the application of the rules of notice of assignment of claims in factoring contracts.It mainly discusses the internal and external effects of the notice of assignment.The internal effect is also the effect on the assignor and the assignee;the external effect is the effect on the debtor and the third party other than the debtor.In addition,by examining the coexistence model of the current system of notification of assignment of receivables and registration of assignment of receivables in China,it is concluded that the legal effect of registration of assignment of receivables lies in the effectiveness of assignment of receivables against third parties.The fourth part points out the three defects of the co-existence model in factoring,namely,the feasibility problem of notification,the high transaction cost and the high risk of fraudulent forgery,and proposes corresponding improvement suggestions for these defects in the last section.This thesis takes the factored accounts receivable assignment notice as the research object in the selection of the topic,based on the foundation.It also combines it with the basic content of civil law,analyzes some problems in the current notice of assignment of accounts receivable in China,and proposes corresponding solutions,in order to promote the healthy development of factoring business in China.In terms of research methods,this thesis uses various methods such as case analysis method,comparative examination method and inductive summary method,combining the Civil Code and judicial practice cases to analyze the way of thinking about such cases and improve the credibility of the article.