A Study Of Collateral Obligation Of Contract

It is the principle of good faith that caused contractual collateral obligation theory and precedent to come into being in continental legal system. In aspect of legal obligation, collateral obligation requires the parties to fulfill not only obligations which are explicitly regulated and engaged in laws or contrancts, but also necessary obligation of good faith, to keep the transactions'order and to protect its safety. There are still a lot of problems confusing judicial practice in the field because of the fact that its formation is based on theory and predcedent. This article discusses the concept of collateral obligation for a start. It is an obligation in accordance with the principle of good faith and existing in the process of the specific development of contractual relations, the role of which is to assist the parties in achieving payment interest and protecting the personal and property interests. It is a legal contractual obligation running through the process from negotiations to completion of performance. Then the rationalization of the collateral obligation is discussed from three main aspcets, i.e., the foundation of collateral obligations, the rationality from the point of view and the value. Collateral obligation can be divided into different types according to different functions, and there are differences and inextricably linked to the secondary obligation of performance and the security obligations. The article also discusses the legal liability for the violation of the collateral obligation, the nature of the responsibility and the ways to take responsibility. Correspondingly, at different stages of the contractual relationship, there are different ways of responsibility in the contracting process, the process of performing and after the end of the performance. To be aimed at the current development of collateral obligation system, the last part reviews on the existing imperfect law and the reasons, and puts forward my own views on the criterion for the application of collateral obligation in practice.