On The Theory Of Justification Of Contract Effect

The theory of justification of contract effect is the foundation that building contract theory and promoting the development of contract legal system, and also the basis for explaining the justification of contract effect. It is the question for the reasons of contract effect given by the law and the reasons of contract's binding force between the two parties. It is the self-examination of contract theory based on a sole value pursuit.The contract effect is not sole but diversity. According to different levels, the contract effect can be divided into five areas: subject's intention effect of the contract, contract social effect, contract economic effect, contract moral effect and contract legal effect. The factors of effect on different levels mean different binding force on the two parties. The contract legal effect can confirm the others, while the others contribute to its formation. The justification of contract effect can be divided into two situations: the rationality and the legality. The former means the contract effect based on the theory of"Common Knowledge, Common Sense and General Reason", which indicates a general understanding of the law, and the later means the contract effect complying with the provisions of the substantive law and the procedural law.The juristical analysis of contract effect holds that freedom is the power to promote the development of contract; the rationality comes from free agreement and autonomy of will between parties, while the legality indicates the confirmation of law to the rationality of contract effect. The ethical analysis holds that"the character of moral seeking goodness"is the origin of the rationality, and the"the character of law seeking goodness"is the origin of the legality. The economic analysis concludes that the rationality means the contract complying with economic logic, optimizing resource allocation, and promoting economic efficiency, and then the legality means the contract which is in line with economic laws will be given legal binding force. The social analysis considers that the binding force of contract is fundamentally from the individual's needs for the social groups and the supports of social groups to the individual, and directly from the compulsion of social norms in the process of contract formation and performance and the parties'response to it; the legality comes from the reasonable legal acknowledgment of contract effect with the aim of enforcing one person who has broken away from the force of social relations or social group.The explaining mode of justification of contract effect can be built on two perspectives. Under the guidance of the basic theories of the depth psychology school and the act psychology school–the"inner-cause theory of act"and the"external-cause theory of act", through a progressive divided-period analysis by dividing the operating process of contract into three stages, including the pre-formation of contract, the formation of contract and the post-formation of contract, it explores the theory of justification of contract effect. The other perspective is to discuss the justification of contract effect on the lawsuit and non-lawsuit based on the state law and the folk law. On the lawsuit, the justification of contract effect emphasizes the external force of the state law, then other factors; on the non-lawsuit, it emphasizes the guiding role of the folk law and state law for the subject's internal factor and the external force of the folk law.The modern contract law is based on diversity contract theories, and then the sole theory isn't easy to expound and prove the justification of contract effect. The provisions in the Contract Law about four forms of contract effects and standard form contract essentially reflect the diversity of contract theories. For the explaining of the four forms, it needs to analysis and explain from lawsuit perspective and non-lawsuit perspective by combining different theories such as the theory of autonomy of will, the principle of faith, the theory of economical benefit, the theory of social relations, etc. All above is to develop a complete basis theory foundation for the contract law playing its role on protecting the parties'rights, promoting economic benefit, preserving transaction order and advocating public interest.