The Application of The Arm's Length Buyer Rule in The Context of The Civil Code

Based on the consideration of protecting interests transactions, article 404 civil code extends normal business buyer rule to chattel mortgage and stipulates constituent elements rule. The activities cannot exceed scope license, goods are for continuous sale; Actual payment is required, but not limited monetary form; Ownership actual possession required. As excluded application, sale production equipment included in application; existence control relationship does necessarily exclude Bona fide can be added identification cover clause. application this block recovery mortgage, it still bound by paragraph 2 406.