The Calculation Of Attainable Interest In Breach Of Contract

The loss of attainable interest compensation in breach of contract is an important part in compensation system for the breach of contract, the Contract Law of P.R.C, Section 113, makes provision for attainable interest compensation, and also some relevant judicial interpretations have recognized it, but it is very principle about the provisions on the scope and methods of the loss of attainable interest compensation. These provisions are lack of operability in judicial practice. This thesis just tends to make a simple analysis on these issues, and expect to make a further study in practical operation. The first part mainly discusses the concept of the attainable interest, expectation interest and reliance interest between common law, civil law and our legislation in different criteria for classification. After that, it elaborates the character of attainable interest and the necessity of calculation on attainable interest. The second part mainly discusses the scope confirmed on the loss of attainable interest, the forms of attainable interest in contract breach which should be considered in practical operation. The confirmation of the scope on attainable interest is the premise to calculate attainable interest. It needs to use the accounting methods to calculate attainable interest in practical operation. The third part mainly discusses five principles of the loss of attainable interest compensation in contract breach. It is necessary to use some relevant principles logically to limit the compensation after the scope confirmed on the loss of attainable interest. So, it could protect the parties'legal rights objectively and fairly. The forth part mainly discusses the calculation methods and criteria of the loss of attainable interest compensation. These calculation methods and criteria is the core of attainable interest compensation, is directly related the specific amount to non-defaulting party. According to the specific circumstances of the contract, these calculation methods and criteria could be divided into subjective method and objective method, agreed method, balance method, inverse method, analogy method, estimation method. The calculation methods and criteria of the loss of attainable interest compensation mainly consider time factors, location factors and price factors. The fifth part mainly discusses the period confirmation and the burden of proof on the loss of attainable interest compensation. It can relieve the burden of proof to the parties through consigning judicial identifier and adopting expert testimony.