Compensation For The Dissolution Of Contract

The system of contract dissolution is an important part of contract law, as it has two functions: to avoid contracts failing through and to guarantee the parties'legitimate interests. The PRC Contract Law learned from the common law system, but due to the recapitulative regulations, it is difficult to fulfill the purpose of contract dissolution. The thesis cites some controversial issues, discusses from the foundation of contract dissolution, Through analyzing the reason, the retroactive effect and the basis for demanding compensation in the system of contract dissolution, I get the idea that the dissolution of contract could be coexist with compensation. The compensation for damages won't be diminished due to the dissolution of obligation. Based on that issue, the thesis descents the important principles and specific circumstances for compensation, and focuses on the compensation for damages occur in the breach of contract.On the ground of antecedent conclusions, the thesis analyzes the limitations, and gives some suggestion to perfect the system of compensation for dissolution of contract in China.