On Compensation For Reliance Interest In Contract Law

With the change from the modern civil law which lays emphasis on absolute freedom and formal justice to the current civil law which lays emphasis on relative freedom and practical justice, the protection of trust-relationship between two parts of a contract is increasingly being attached importance to. The expansion of contract obligations and contract law responsibilities is an obvious evidence. To some extent, the reinforcing protection of trust-relationship is a symbol of current civil law.Trust-benefit refers to the trust on the other part or the trust based on the good faith resulting from the performance of the contract, and in this situation the transaction cost is expected to be made up for through the benefits getting from the performance of the contract. The trust-cost has nothing to do with whether a contract is valid or not, which is the inevitable expenditure and the necessary cost of the trusting person's pursuit of benefits. So the so-called lose caused by trust actually refers to a state with no benefits because the trust comes to nothing, and the trusting part can not compensate the expenditure of transaction cost by obtaining benefits from the performance of the contract. Trust-benefits is composed of four main parts: (1) the rational contacts between the two parts of a contract; (2) one part has got the trust on the other in the contact; (3) for the expectation of the future results, the trusting part admits the expenditure of the transaction cost; (4) the trusting part has rational expectations that he can obtain benefits which can compensate the transaction cost when the contract comes into effect. So trust-benefits are different from returned interests of unjustified enrichment and performance interests of a valid contract. The principles of the protection of trust-benefit are as follows: (1) protecting the dealers' system-trust andtrust-expectation; (2) offering the condition of concluding a treaty safely to trade persons in order to decrease cost; (3) making up for the inefficiency of the responsibility in breach and the responsibility system of encroachment of right.The compensation responsibility of trust-benefit forms the important document, and the essay adopts the common theory of four important documents, the merits of which are honesty and credit. It relaxes the conflicts between the individual value of treaty-freedom and the whole value of transaction-safety. The compensation system of trust-benefit applies not only to an invalid, ineffective and abandoned contract but also to some other situations such as awaiting efficiency, dissolution of a contract, the lose of the right of abandoning a contract. There is still applicable room in the event that the contract is settled and valid. The compensation scope of trust-benefit, with the help of debt-defaulting theory, shall be restricted by foreseeable regulations, by the principle that the gains offset the loses, and by rules of victims having faults. whether the compensation should be restricted by performance-benefit cannot be treated as the same. If there are any accidents that cause body damage, the compensation principle should be carried out thoroughly, besides this, the performance-benefit should be described as a limit.