Research On Liability For Breach Deposit

The system of deposit has a long history. China has gradually established a deposit legal system in which breach deposit takes the leading role and other kinds of deposit take the secondary role. Breach deposit is not only a guaranty style, but also a form of liability for breach of contract.The establishment of liability for breach deposit should be equipped with three requirements of contract of breach deposit,breach of contract and fault. The liability for breach deposit has a strong punishment characteristic. So"Material breach of contract"should be viewed as the criterion of"breach of contract"which may result in establishment of liability for breach deposit. At the same time,"incomplete performance"also applies to liability for breach deposit.Finally, the paper discuss how to deal with problem when liability for breach deposit coexist with other main liabilities for breach of contract. Because actual performance conflicts with liability for breach deposit, they can not be applied together. liquidated damages and liability for breach deposit have same purpose and character, so the parties should choice one. If liability for breach deposit could not compensate the damage of breach performance, according to the principle of completeness compensation, compensation for damage can be applied too. Furthermore liability for breach deposit can be applied after contract is rescinded.