Year: 2025
Type: article
Abstract: The normal operation buyer rule originally only applied to floating mortgages of movable property, but Article 404 of the Civil Code elevated it to the general field of movable property mortgages, which is an expanded application that conforms to the original intention of the mortgage system and the coordination requirements of the property rights code. The normal operation buyer rules contain various value concepts such as transaction value, efficiency value, fairness value, and trust value, which are the institutional arrangements that should be made for the development of commercial transactions. This rule can be understood as a special form of acquisition in good faith, where the buyer trusts the mortgagor in good faith, allowing the mortgagor to sell the collateral freely and without burden in normal business activities, and the law allows the transferee to acquire ownership of the collateral without burden. This article takes the normal operation buyer rule as the research object. Firstly, it elaborates on its basic concepts and constituent elements, then analyzes the main problems of this rule in judicial practice, and finally proposes specific suggestions for improving the normal operation buyer rule.
DOI: 10.54691/ds3mnz68
Author: Yating Liu
Institution: Dalian Ocean University
Language: English
Subfield: Law
Field: Social Sciences
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4412379680