Research On The Scope Of Damages For Cancellation Upon Breach Of Contracts

There were many researches in reasons of cancellation on contracts,but few in damages. Even when damages for cancellation upon breach of contracts were talked about, most of scholars focused on coexistence of cancellation and damages. In fact, the point that cancellation and damages could coexist had already been accepted by most countries, and was affirmed by contract law of China. But there are no explicit provisions in contract law of China and no unified ways in judicial practice about the scope of damages for cancellation upon breach of contracts. And moreover, there is no overall discussion about the issue in academicals circles.However, the definition of the scope of damages for cancellation upon breach of contracts has much significance both in theory and practice. Therefore, through the compared research of legislation examples and theories of some countries, upon the carding and discussion of relevant theories of cancellation, the author tries to discuss the scope of damages for cancellation upon breach of contracts. The paper mainly resolves two issues: first, the scope of damages for cancellation upon breach of contracts is based on performance interest or reliance interest; second, if the scope of damages for cancellation upon breach of contracts should cover acquirable interest. The main body of the paper, with over 30,000 words totally, is divided into four chapters.Chapter one mainly discusses the coexistence of cancellation and damages. The paper introduces and reviews the theory and its development of choice principle and coexistence principle, explains the reasons and current situation of acceptation of coexistence principle in most countries, and different explanations and points of coexistence principle are extracted.Chapter two mainly discusses two different theories and legislation examples about the scope of damages for cancellation upon breach of contracts, which are principle of performance interest and principle of reliance interest. The chapter discusses three relevant theories which influence the theories, i.e. cancellation object, retroactivity of cancellation and basis of damages claim right, besides that, it also compares and analyzes the points and reasons of principle of performance interest and principle of reliance interest. Upon these discussions, the conclusion that the scope of damages for cancellation upon breach of contracts should base on performance interest is finally comes out.Chapter three mainly discusses the issue if the scope of damages for cancellation upon breach of contracts should cover acquirable interest. On the basis of clarification and explanation of some terms relevant to the definition of scope of damages, the chapter analyzes different points and reasons of acquirable interest damages, and discusses that the scope of damages for cancellation upon breach of contracts should cover acquirable interest form three angles which are legal theory, legal explanation and interest balance.Chapter four summarizes last three chapters, upon that, it discusses that the scope of damages for cancellation upon breach of contracts not only covers performance interest based on breach of contract, but also the damages because of cancellation which beyond the liability for breach. The chapter also points out that the scope of damages for cancellation upon breach of contracts is also limited by general constraint rules of damages.