Analysis On The Exercise Of Rights In Factoring Contracts With Recourse Rights

Factoring is the transfer of its receivables by a creditor to obtain financial services provided by a factor.In recent years,the scale of domestic factoring has been expanding,and the number of legal disputes caused by it has increased year by year,and the shortcomings of lack of legal support for domestic factoring dispute resolution have gradually emerged.Therefore,after the promulgation of the Civil Code,factoring contracts will be stipulated in a special chapter to respond to various disputes in practice,but the provisions of the Civil Code alone are not enough to deal with complex factoring practices.In order to clarify the rights and responsibilities of the parties in a recourse factoring contract and how to exercise them,this paper takes the "contract dispute between a bank Chongqing branch and a logistics company and a commercial trading company in Chongqing" as an example to analyze the three focus of disputes in this case: whether the debtor needs to be liable when the creditor and a trading company unilaterally fabricate accounts receivable;whether the two claims of the Chongqing branch of the factor’s bank can be supported at the same time;Whether a logistics company in Chongqing,the debtor,has the right to exercise a defense against the factor’s claim.Focusing on the above focus of the dispute,combined with the relevant legal theories and the facts of the case,it is concluded that the second factoring contract in this case is a voidable contract,and the debtor needs to be liable because the factor chooses to continue to perform and the debtor’s acts are impregnable;The factor is entitled to assert both rights at the same time,but the claim for repurchase in the claim and the recourse cannot be supported at the same time;The factor failed to inform the debtor of the existence of a no-objection undertaking in the notice of assignment of receivables,and the debtor proved that it had disclosed the underlying contract defense to the factor,so it could not be inferred from the debtor’s act of signing the confirmation notice that it had waived its basic contract defense.On the basis of case analysis,this paper puts forward some suggestions on standardizing the factoring with recourse at the judicial level.In order to more clearly identify the disputes in the factoring with recourse,it starts from clarifying the debtor’s liability bearing rules when the creditor unilaterally fictions accounts receivable,the scope and sequence of debtor’s repayment liability and creditor’s repurchase liability,and detailing the requirements of the factoring to perform the obligation of creditor’s assignment notice.