Contract Law On Integrity Mechanisms

The concept of Bona Fides is the reflection of the abstract notion of Fairness in Contract Law. The focus of this thesis is how to turn the notion represented by Bona Fides into a more concrete mechanism so as to make it more operatable and foreseeable in practice, thereby accentuate the function of the Principle of Good Faith.The development of Bona Fides rules has not been one only in the techniques of law. It is not only the intrinsic demand of transactions but also the natural choice of social developments, which ask for variances, harmony and equilibrium. It has incorporated profound contents in history, culture and economy. Bona Fides mechanism helps realize the balance between social fairness and freedom of contract, law uniformity and individual justice. It is by coordinating conflicts of different interests that justice is achieved.Rules of good faith have been well developed either in Continental Law or in Common Law. On this point the two systems of law share material common ground. Most recent developments in Contract Law can all be regarded as "system design" that resolve legal issues relating to Bona Fides.It is significant for the social evolution of China to improve the Bona Fides mechanism in Contract Law. The author holds that, Bona Fides mechanism in Chinese Contract Law should be guided by multiplex standards including the standard of evident unfairness (unconscionable conduct), cooperative transaction (fair dealing, reasonable expectation) and the fiduciary relationship. It should be a smooth and efficient mechanism based on the rules of pre-contract obligation to negotiate, secondary obligations, the doctrine of change of circumstances and the rules of remedy for breach of contract in good faith, as well as innovative method of case law. Establishment of the good faith mechanism will help to achieve a swift and dynamic leap forward of China's Contract Law in a new historic period.