Study On The Effect Of Contract Rescission

Contract rescission is an important basic system of contract law, it arises in the process of the contract concept's evolution from contract freedom to contract justice. The dissertation should analyze the core of this system namely the effect of contract rescission. The dissertation relates to three most important issues in effect of contract rescission. They are retroactive effect of contract rescission, liability in restitution and compensation for damages. In the discussion the dissertation adopts the method of comparative law, the method of explanation. On the basis of related domestic and outside theories and legislation of rescission of contract, the dissertation makes a deep analysis and systematic study on effect of contract rescission.Chapter one is the chief introduction of contract rescission. This chapter discusses the definition, value and development history of contract rescission. Moreover, this chapter analysis the relationship between contract rescission and termination of contract, and the relationship between contract rescission and breach of contract.Chapter two is about the theory and legislation of effect of contract rescission. Through reviewing legislation in each country and our county, and analyzing the theory of direct effect and the liquidation relationship, the dissertation elicits the issues are: retroactive effect of contract rescission, the relationship between liability in restitution and retroactive, compensation for damages.Chapter three is about retroactive effect and liability in restitution. The author holds the view of liquidation relationship. After the rescission of contract, the contract still exits, it comes to a relationship of liquidation after rescinding the contract. The retroactive effect should be played down in order to pay attention to the compensation for damages. This chapter analyzes the character and ranges of the liability in restitution.Chapter four discusses the compensation for damages. In the view of liquidation relationship, the contract still exists after rescission of contract, so the contract rescission and compensation for damages can exist at the same time. The damages scope of contract rescission includes: the damages of not fulfilling debt and the damages which is causing from the rescission of contract. Besides, the liquidated damage term still restrict the contract parties.