Research On The Rule Of "Normal Business Buyer" In Chattel Mortgage Field

The Article 404 of the Civil Code of the People’s Republic of China expands the application scope of the "normal business purchaser rule," which originally applied only to floating collateral in the floating collateral system,to the general chattel mortgage field.However,due to the highly condensed language and abstractness of legal language pursued by legal provisions,there are difficulties in correctly applying this rule in practice without clear and specific application standards,and even abuse may occur.The "normal business purchaser rule" involves the interests of three parties: the mortgagee,the seller,and the purchaser,and in order to balance the interests of the three parties under the general chattel system,and prevent any party’s rights and interests from being harmed,this article proposes reasonable and feasible suggestions for the correct and accurate application of this rule from the perspectives of the internal system requirements and external legal effects,using legal interpretation and the method of balancing interests.By studying the value and system integration of this rule,the legitimacy of expanding the scope of application of the rule is affirmed in response to the views of opponents.In addition,by analyzing the historical evolution of the rule and comparing it with the system of acquiring in good faith,it is clear that the institutional basis of the rule is floating security,not the system of acquiring in good faith.This lays a theoretical foundation for later deconstructing the application requirements of this rule and improving the path of protecting the mortgagee in the external system.To ensure that the rights and interests of the parties are not harmed,measures must be taken to prevent the "normal business purchaser rules" from being misused or abused.Therefore,it is particularly important to further refine the internal application requirements of this rule.Based on Article 404 of the Civil Code,this article reflects on and improves the objective elements of the internal application requirements of this rule,namely,"normal business activities," "reasonable payment of the purchase price," and "acquisition of the mortgaged property." Furthermore,this article discusses and provides improvement suggestions for the internal subjective elements of this rule,namely,the requirement of good faith on the part of the purchaser and the standard of good faith that has not been clearly specified in this rule.This further clarifies the scope of application of this rule,preventing it from being incorrectly applied,which could result in harm to the interests of the parties and removes the obstacles that exist in the application of this rule by judicial organs in practice.