Rationality Investigation Of Remedies For Breach Of Contract

Remedies for breach of contract is the right granted to the innocent party of a contract when the other party has broken the contract. Such right can be exercised through or not through the court. As a right that provides recovery for the innocent party of the contract, the remedies are extremely significant for smooth business transaction, which is a key factor for the economic development and social stability. Remedies for breach of contract is a legal concept different from the liability for breach of contract. The former is a right while the latter is a duty. As a result, the connotation and extension of the two concepts are also different. Normally, remedies for breach of contract include award of damages, specific performance, contract termination and liquidated damages. There are differences among the regulations in different countries and United Nations Convention on Contracts for the International Sale of Goods (CISG) and The UNIDROIT Principles of International Commercial Contracts (UNIDROIT Principles). The common law countries usually provide award of damages as the remedies for breach of contract while the continental countries prefer specific performance. The difference results from the different legal value preference as some countries give priority to justness while the other countries attach importance to efficiency. This article tries to analyze the rationality of remedies, which can facilitate both justness and efficiency. It mainly includes the following parts:1. Introduction of the provisions of different countries and CISG and UNIDROIT Principles and comparison of the advantages and disadvantages of these provisions.2. Introduction of the regulations about remedies for contract breach under the Contract Law of the People's Republic of China and investigation of its rationality value.3. Analysis of the rationality of the Contract law of the PRC and necessary amendatory suggestions based on the research result.