Improving the law on protecting bona fide third parties with regard to invalid civil transactions

Abstract

Protecting the interests of bona fide third parties is an important issue in dealing with the consequences of invalid civil transactions. Although the provisions on protecting bona fide third parties have been amended and supplemented gradually, at present, the conception of bona fide third parties and criteria for determining bona fide third parties remain ambiguous. Nonetheless, there is no universally agreed-upon concept of “transfer of property to a third party” under the perspectives of legislation as well as administration. This situation has led to different consequences in the process of law implementation. This article analyses theoretical issues, assesses relevant provisions, and thereby proposes some recommendations for improving the law on protecting bona fide third parties with regard to invalid civil transactions.