A Study On The Reliance Interrest And Its Compensation In The Establish Of Contracts

There is no dispute that reliance interests should been protected in theory and in practice. However, what's the reliance interest hasn't been represented in the way accepted by most of the people due to the situation that no attention has been paid to reliance interests by orthodox lawyers. The intension of reliance interests is very important because the constitution of reliance interests compensation, the sphere of application: and scope of compensation is determined by it. Traditional theory of civil law believes that the reliance interests is the loss caused by void of contract while the party relies on the formation and validation of contract, while the party relies on the formation and validation of contract.However, many mistakes exit in this opinion in theory or in practice. The study on reliance interests compensation is also influenced by these mistakes. Since, the author will research into the real intension of reliance interests again in this article, at the same time, discuss the problems of compensation on this basis. This article contains the following six parts: the intension of reliance interests, constitution of compensation, basis of requisitional right, sphere of application and scope of compensation, at last make a self-criticism on theprotection to reliance interests in our country.Actually, in the process to sign a contract the object that the party relies on is the conduct of signing a contract, not the validation of contract. In surface, the reason that causes the loss of reliance interests is the void of contract: but the essentialreason is that the party relies onthe other party's conduct of signing a contractwhich violates the obligation of good faith. Sometimes the conduct of signing acontract against the principle of good faith won't lead to the void of contract, butwill cause the damage. In this situation, the loss of reliance interests should beencompensated in spite of the validation of contract.The author agees the four-elements doctrine in the constitution of reliance interestscompensation. The four-elements are: the party violates the previously conclued contract obligation; the other party experiences loss; there is relation of cause and effect between theloss and the conduct of violating the previously conclued contract obligation; the party that violates the previously conclude contract obligation has fault. The reliance interests compensation is applicable not only on the spots that the contract is void, revoked or isn't formed, but also on the spots that the contract is validation. This is because the loss of reliance interests isn't the damage caused by the void of contract while theparty relies on the validation of contract.For the present ,there is lack of credit seriously in our country ,which has prevent the development of market economy. So we should work hard to research and protect the reliance interests. The system of reliance interests compensation has been provided in the Chinese ((The Contract law)). It is a successful legislation with some shortcomings, such as lack of the provisions to exclude the rule of contributory negligence, to calculate the damages. So we should improve the provisions further.