On The Effect Of Contract Termination

Generally speaking,"retroactive effect of contract termination"will make contract relationship retroactive to destroy, but civil law circle has many different opinions. The most influential theory is"non-retroactive effect of contract termination", which considers that contract termination no more than remove the force of the contract in the future, but has no resistance to the validity of the parts which have been fulfilled. Many countries just carry out legal construction according to this theory. The main problem in contract termination, but not the sole one, is retroactive effect, and other problems include liability in restitution and compensation for damages. These issues are complex, and the related discussion is very tough, so there is no accurate verdict in theory and legislation.Through the comparative analysis among all kinds of theories in contract termination and legislations in different countries, this paper summarizes the effect of contract termination systematically and put forward my own views, hoping to make some efforts for the improvement of contract termination institution in our nation. There are many issues worthy of studying in the field of contract termination effect. This paper will focus on retroactive effect and discuss relevant issues. The dissertation relates to three most contentious issues in effect of contract termination. They are retroactive effect of contract termination, liability in restitution and compensation for damages. Besides lead-in and conclusion, dissertation contains five chapters.Chapter one is the chief introduction of contract termination and the limitation of the topic is issued. This paper analyses the purpose and function of contract termination, discusses its significance. Through the comparison among related theories, legislation and similar institution, I define the concepts of contract termination this paper will discuss.Chapter two analyses the theories in contract termination effect. This chapter sums up four theories which have influence in the study of contract termination effect and analyses the viewpoints in each theory.Chapter three is the key part of the paper, analyzing the retroactive effect of termination of the contract. According to the comparison among domestic and foreign legislations, this chapter conveys comprehensive understanding of this issue. The issue of retroactive effect has great impact on the effect of termination of the contract. This chapter proposes the starting points of choosing which argument, and respectively analyzes them, concluding that"non-retroactive effect of contract termination".Chapter four discusses liability in restitution after the termination of a contract. According to the view that the termination of a contract has no retroactive effect, this chapter analyses the legal nature of liability in restoration comprehensively, which should be a claim arising from the right of obligation, and discusses the bound of liability in restoration.Chapter five discusses compensation for damages. According to the view that the termination of a contract has no retroactive effect, this chapter analyses the legal base of right of claim of compensation for damages and discusses the bound of compensation for damages.In the above five chapters, chapter three, retroactive effect of termination of the contract, is more important part in this paper. Because whether the termination of a contract has retroactive effect has utmost impact on liability in restitution and compensation for damages. According to the comprehensive analysis of the above issues, I hope to find out the realistic legal system arrangement.