A Study On The System Of Fundamental Breach

Fundamental breach is a law system which stems from Common Law of England. Now it has developed to be an important rule of modern contract law system after it was accepted by American law, Continental Law and some international conventions. Beginning with the study of the origin and values of fundamental breach, this article makes a comparative study on some related breach forms and deeply analyzes the constituents as well as the legal effects of fundamental breach. On the basis of these analyses, the article gives some suggestions on the improvement of the fundamental breach system in China. There are five parts in the article:The first part studies the origin and values of fundamental breach. It stems from Common Law of England and the intrinsic values are equitableness, efficiency , safety, and so on.The second part makes a comparison between fundamental breach and other related breaches. The deep comparisons include: fundamental breach and anticipatory breach, fundamental breach and repudiatory breach, fundamental breach and impossibility.The third part discusses the constituents of fundamental breach. Based on the prescriptions regarding the constituents of fundamental breach system in some foreign laws and international conventions and on the generalization of the similarities and differences between these prescriptions, the author offers some independent thoughts.The fourth part discusses the effects of fundamental breach. There are two effects: i.e. the discharge of contract and the restriction of exemption articles.The fifth part discusses the inadequacy of Chinese fundamental breach system and gives some improvement advices.