| The provisions of Article 68 and Article 69 of China's Contract Law establish a legal defense theory that is somewhat similar to the anticipatory breach theory in Civil Law System Before and after the establishment of this legal theory, the theoretical and practical fields have different views on its name, nature and application conditions, etc. On the other hand, the Article 68 takes some elements from anticipatory breach theory of Common Law System. As a result, the Article 68 and Article 108 of China's Contract law overlap on some points. Therefore it is necessary to make a special discussion on Article 68. For a proper application of the legal defense theory involved in Article 68, this paper focuses on the discussion of its basic concept, application conditions, etc. It also makes a contrast between this theory with anticipatory breach theory of Civil Law System as well as with anticipatory breach theory of Common Law System In such a way, some problems existing in Article 68 will be revealed Finally, the paper puts forward a suggestion that the relevant legal interpretation about Article 68 be issued and the relevant law be revised so as to perfect this legal defense theory, to balance different interests among parties and to guarantee the proper performance of contracts as well.
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