Study On The Effect Of Contract Termination

The system of the contract termination contains many researchful issues. The dissertation should analyze the core of this system namely the effect of contract termination. The dissertation relates to three most contentious issues in effect of contract termination. They're retroactive effect of contract termination, liability in restitution and compensation for damages. Besides lead-in and conclusion, the dissertation contains four chapters.Chapter one is the chief introduction of contract termination. This chapter discusses the definition, origin, purpose, function and otherwise of the system of contract termination. Furthermore, the range of discussion is restricted within specially limits. Contract termination consists legal termination and promissory termination. The system of the contract termination only applies to un-durative contract.Chapter two discusses the issue of retroactive effect of contract termination. Through reviewing legislation in each country and analyzing relative theory, the dissertation holds that contract termination has part of the retroactive effects. The exercise of the right to terminate contract only terminate the two parties'contractual obligations namely'primary obligations'. Consequently, although the parties are discharged from their obligations, the contract relationship isn't terminated. As the maintenance and transformation of primary obligations in the contract, compensation for damages for breach of contract cannot be discharged due to the termination of obligations. Then this chapter gives the reasons.Chapter three discusses the liability in restitution after termination of contract. This chapter analyzes the definition, character and ranges of the liability in restitution. The meaning of the restitution after termination of the contract is that both parties'properties return to or restoration of a previous state or position before entering into a contract. Restitution rectifies unjust enrichment by forcing the party who has been unjustly enriched to return the item unfairly gained, or its value if the item cannot be returned.Chapter four discusses the relationship between the termination of contract and the compensation for damages. The chapter two puts forward that compensation for damages for breach of contract cannot be discharged due to the termination of original obligations. It is the theoretic base of the party applies for the compensation for the damages of breach of contract. The dissertation supports that the base of the right to allege the compensation for damages is breach of contract. Under the circumstance of breach of contract, the compensation could adopt the general regulation for compensation for damages. Besides the compensation for damages of breach of contract, there is other compensation, which should include the compensation due to terminating the contract and the compensation for inherent interest.Chapter two is the key part of this dissertation. The issue of retroactive effect of contract termination can have material effect on the liability in restitution and he compensation for damages. Therefore, the dissertation analyzes the object of contract termination. It is considered that the object of contract termination should be the original right and obligation under the contract, while the contract relationship and the right and obligation for the purpose of remedy still exist. Reacquainting of the object of contract termination can resolves the logical contradiction of traditional theory.