Study On Punitive Damages

Torts and breach occur inevitably. Though we could not eradicate such illegal actions, we could surely remedy the victims by specifying the damage liability of the infringer and the breach parties.The claim for damage within the framework of Civil law of P.R.China adheres to the principle of compensation. But the principle of punitive damages, which has been functioning well on the research and practice of damages institution in Anglo-American Law System, is exerting the influence on the Continental Law System. Also, its application extends from the torts area to the contract one. The principle of punitive damages make up the loopholes of the principle of compensation with the multiple functions including compensating, punishing and checking. It exerts severe punishment on the infringers as well as completely compensating the victims, so as to preventing the reoccurrence of the damages to some extent.With the focus on the dealing of real estate, this paper puts emphasis on the 5 clearly-specified circumstances adopted into the "Interpretation on the Legal Application to Cases Hearing of Real Estates Dealing Contract" by the Supreme Court, under which the purchasers could claim punitive damages against the sellers of real estates, and addresses a series of the legal issues concerning the application of the punitive compensation to the real estates dealings. Also, this paper puts forward the rationality and significance of punitive compensation institution adopted into the real estates dealing. Moreover, this paper, based on the writer's judicial practices, probes into the "Interpretation on the Legal Application to Cases Hearing of Real EstatesDealing Contract" by the Supreme Court, discussing several legal issues and putting forward the proposals accordingly.This paper is comprised of 4 chapters, amounting to 35000 words.Chapter one, with the basis of analysis on the fundamental causation of damages, torts and breach, introduces the concepts of punitive damages and compensative damages. After analyzing the attributes of punitive damages, this paper addresses the relation between principles of punitive damages and compensative damages, and thereafter it discusses how we should apply the principal of punitive damages.Chapter two is the legal analysis on the punitive compensation institution. Viewing from its historical evolution and comparison between Anglo-American Law System and Continental Law System, this paper discusses in detail the origin of the punitive compensation, and then it analyzes the structure and fundamental functions including compensating, punishing and checking. After that, this paper makes case studies on the calculation standard and method of the punitive compensation.Chapter three is the economic analysis on the punitive compensation. Based on the economics theory of information asymmetry, this paper probes into the economic causation of frauds occurred in the real estates markets. With that, it puts forward the solution to the "Lemon Market" caused by the asymmetry, that is, the law could establish rules of punitive compensation to alter the anticipation of parties, thus achieve the consistency of justice and efficiency.Chapter four studies the law establishment of punitive compensation. After discussing two heatedly debated issues, this paper construes the current situation of legislation and analyzes the practical issues triggered by the "Interpretation on the Legal Application to Cases Hearing of Real Estates Dealing Contract". Then this paper, with the basis of studies on burden of proof and calculation of the punitive compensation, addresses some proposals to improve the institution of punitive compensation.