Research On Compensation For Damages After Legal Termination Of Contract

There are always disputes on the relationship between contract rescission and compensation for damages in theory. The termination of contract is divided into the legal termination, termination by agreement and rescission. The research object of the article is legal termination of contract, which is most important. The article focuses on the legal damages of termination. Besides lead-in and conclusion, the dissertation contains four chapters.Article 97 of China Contract Law provides the remedies in case of termination."Upon termination of a contract, a performance which has not been rendered is discharged; if a performance has been rendered, a party may, in light of the degree of performance and the nature of the contract, require the other party to restore the subject matter to its original condition or otherwise remedy the situation, and is entitled to claim damages."The damages are always thought of damages of breach of contract. Damages of breach of contract are based on a valid contract. Most people think that termination of contract discharge the contract in retrospective and the foundation of damages of breach of contract is disappeared. But what is the basis of the damages?Termination of contract does not discharge the generalized contract. The whole essay is based on this .The effect of the termination of the contract contains two parts. One is the original rights and obligations are cancelled, and the other is that remedial rights and obligations are produced by the termination. The object of cancelling a contract is the original rights and obligations. When we say"cancelling a contract", we mean cancelling the original rights and obligations of the contract, not the contract itself. And once the contract comes into force, the generalized contract still exist and be the legal proof for the remedy of damages such as legal relationship of the liability in restitution and the compensation for damages.The main methods of compensation for damages include the liability in restitution and the compensation for damages. In the relationship of the liability in restitution, it focuses on the character and ranges of the liability in restitution. The compensation for damages is the key part of this dissertation. This part first analyzes the range of the compensation for damages. Is it reliance interest or performance interest? I think it should be performance interest. Then the part analyzes the specific range of the compensation for damages. It contains the compensation for damages of breach of contract ; there is other compensation, which should include the compensation due to terminating the contract and the compensation for inherent interest.Finally the article is established in the compensation for damages of our Country, and analyzes the present legislation and makes pertinent suggestions to promote the unity of justice and realize the real justice.