Study On The Right Of Termination Without Any Reason

The right of termination without any reason differs from the general right of statutory termination. So far, it has not been discussed specially in the academic circle. The current provisions on the right of termination without any reason in the Contract Law of China are too general. And there are some logical problems. Therefore, it is of necessity to study the right of termination without any reason.This paper firstly introduces the origin, the features, the characteristics and the essence of the right of termination without any reason. Then discusses the legal consequences of exercising the right, focusing on the compensation of damage. At last proposes several legislative recommendation as follows.The General Part of the Contract Law of China should stipulate the basic issues of the right of termination without any reason, including the characteristics , procedure of exercising the right and legal consequences of the right in the future. As for the compensation of damage, if the party who exercises the right has no fault, the party is only reliable for the compensation of actual loss, not including the expected benefits.If the party maliciously exercises the right and has fault, that is violation of contract. The party should bear the liability of all compensations, including the expected benefits.