JOURNAL OF BEIJING UNIVERSITY OF AERONAUTICS AND A ›› 2019, Vol. 32 ›› Issue (2): 1-7.DOI: 10.13766/j.bhsk.1008-2204.2019.0043

Previous Articles     Next Articles

Regulations on Default of SME Debts in Contract Law Book of Civil Code

LONG Weiqiu, WANG Qi   

  1. Law School, Beijing University of Aeronautics and Astronautics, Beijing 100083, China
  • Received:2019-01-26 Online:2019-03-25 Published:2019-03-28

Abstract:

In recent years, debt in arrears to small and medium-sized enterprises have become a serious social problem, which needs to be solved urgently. Since the default of debt involves the contractual legal relationship between the parties, the fundamental solution to this problem cannot be separated from the means of contract law. Contract law should be equipped with a general mechanism for the prevention and punishment of delinquency, which consists of two main instruments. The first instrument is to limit the agreed scope of the payment period to prevent the debtor from abusing the freedom of contract, the second instrument is to increase the defaulting party's liability for breach of contract, the feasible measures are to increase overdue interest and to grant creditors an additional fixed sum of compensation. This article provides suggestions for specific legal provisions and legislative reasons.

Key words: civil code, book of contact law, small and medium-sized enterprises, debt in arrears, delay in performance, overdue interest, liability for breach contract

CLC Number: