What are the legal consequences of the creditor and the debtor changing or terminating the contract without authorization after the factoring company receives the accounts receivable and notifies the debtor?
Legal analysis: after the factoring company receives the accounts receivable and notifies the debtor, the legal consequences of the creditor and the debtor arbitrarily changing or terminating the contract are: if it adversely affects the factor, it will not be effective for the factor.
Legal basis: Article 765 of the Civil Code of People's Republic of China (PRC). After the debtor of accounts receivable receives the notice of assignment of accounts receivable, if the creditor of accounts receivable and the debtor negotiate to change or terminate the basic transaction contract without justifiable reasons, which will adversely affect the factor, it will not be effective for the factor.