A Brief Analysis Of The Rules On Reliance Interest Damages

Rules on reliance interest damages are set up progressively with thedevelopment of legal system of creditor's rights. In the field of constantlydeveloped contract law, out of the need in many aspects, such as fairness,morals and social efficiency, etc. a new compensation system arises. Thisis so called reliance interest. This article tries to discuss the developmentand improvement of reliance rules in our country's legal system, bystudying the legislatures and theoretical basis of the rules on reliance 4interest. The article contains over 30,000 words, composed of a prefaceand 6 chapters. The preface is a brief introduction, which discloses the purpose of thearticle, by analyzing the historical background of the development of therules on reliance interest. It plays an important role in touching briefly onthe essentials. Chapter One: The Concept On The Rules Of Reliance Interest. Byanalyzing the relationship between reliance interest and some otherrelevant interests, and through legislative introduction of variouscountries and regions, such as Germany, Switzerland, France, Japan,Taiwan, and some common law countries such as U.S.A., and by quotingsome comments on the reliance interest of the legal circles in variouscountries, the author thinks that the rules of reliance interest is significantamong the laws of contracts, is because it fills up the gap in the contractsystem, serving as a organic part in line with pre-contractual liability,covenant liability, and post-contractual liability. The author states at theend of this chapter that the value and function of reliance interestdamages is to reduce the risk and encourage the completion of a business 5transaction. Chapter Two. The Liability Bases And The Nature of the Plea. Thechapter consists of two parts. In the first part, the author analyzes thedifferences between reliance liability and other damage liabilities,develops his own opinion, basing his ideas on the research andachievement of various legal professionals in the field of reliance interest.In the second part, the author emphasizes on the nature of the plea. To putit simple, the reliance interest in embodies in the principles of good faithand fairness. Reliance interest damage is neither based on legal conductnor on tort conduct. It is created by the law. Chapter Three. The Constituent Parts Contributing To RelianceLiability. The constituent parts of reliance liability, are that the standingcontract is void or voidable, that there are actual damages, causation ofdamages, creditors non-contribution to the damages. Chapter Four. The Redresses And Scope Of Reliance Interest. Thischapter introduces the potential redresses practised in civil law countriesas well as in China, in comparison with those in the common law 6countries, analyzing their advantages and disadvantages. In the scope ofreliance interest, the civil countries limit it on to property damages, butthe common law countries often extends reliance interest to non-propertydamages. The author thinks we should give more study to non-propertydamages. Chapter Five. Principles Applied In Reliance Interest Damages. Inthis section the author introduces some principles applied in relianceinterest damages, such as the principle that reliance interest does notexceeds performance interest, the principle of vorteilsanreeichnung, theprinciple of culpa compensation and the principle of foreseeabiliy, etc.,discusses their feasibility, presents his own opinion. Chapter Six. The Application Of Reliance Interest In China'sContract Law. It's the kernel of this article. The author discusses severalsituations in the standing China's contract law where reliance interest isapplicable, and raises some problems that is worthy of note in judicialpractice, and tries to give probable solutions to these problems.