Discussion On The Perfection Of The Arbitrary Right Of Revocation In Donation Contract

The contract law always emphasizes the protection of the reliance interest in the contract. It is the requirement of the credit economy. The reasonable reliance of the donee should be protected by the contract law.Based on the unilateral nature and the promissory nature of the contract of gift and in order to balance the interest between the donor and the donee, the first paragraph of article 186 in the contract law stipulates that the donor has an arbitrary right of revocation. The article protects the interest of the kind donor, but it may harm reasonable reliance interest of the donee. Rights conflict between donor and donee has provided a good point for legal study and research, this paper just starts form that,analyses the limitations exist in the theory of the arbitrary right of revocation in donation contract and puts forward relevant modifications on articles of donation.The thesis consists of three parts and its outline is written as follow:Part one raises the conflicts between the arbitrary right of revocation and protection of the Reliance interest of the donee. The arbitrary right of revocation in the donation contract is different from the rescission right in the revocable contract. The system of the arbitrary right of revocation aims at balancing the interest between the donor and the donee. Reliance interest is an inherent interest. According to the principle of good faith, the donee's reliance interest should be protected by the contract law. Owing to the stipulation of legislation, the donor has a arbitrary right of revocation. This state removes the right of claiming for damages.Part two analyzes the causes of the conflicts between the system of the arbitrary right of revocation and protection of the Reliance interest of the donee. For one thing, because the arbitrary right of revocation is arbitrary and it lacks of reasonable restrictions, it harms the Reliance interest of the donee. For another thing, according to the contract law, the claim is not adapt to the contract liability for fault, even if the interpretations about the purpose of the first paragraph of article 186 in the contract law are limited, there is no theoretic base for the claim for damages. The donee still cannot gain protection. Part three discusses how to perfect the system of the arbitrary right of revocation in donation contract. Firstly, the paper analyses the doctrine of reliance liability in Germany and the doctrine of promissory estoppel in America and consider that the contract law should take the doctrine of reliance liability to protect the reliance interest of the donee. Secondly, the paper put forward its own opinion to perfect the relevant legislation. The author holds that the article 186 in the contract law should add a clause, which stipulates the loss of reasonable reliance interest in donation contract should be compensated.