The Research Of The System Of Contract Rescission

Firstly, this paper analyzed the system of Contract Rescission. It is established later than other systems of contract law. Under PRC contract law, Rescission of Contract was divided into Stipulated Rescission and Statutory Rescission. The cause of Statutory Rescission includes force majeure, anticipatory breach of contract and delay in performance. The author holds the view that the cause of Statutory Rescission should include change of circumstances, and such dividing method is improper in the sense of scientific. The author recommends that the cause of Rescission of Contract shall be divided in accordance with the objective events and subjective facts. The subject to exercise the right of rescission shall be the contract party instead of the court. Moreover, the exercise of the right of rescission shall be limited by a regulation of scheduled period. To distinguish the issue of retroactivity of rescission, the author suggest that Stipulated Rescission may be further divided into Rescission and Termination. Rescission shall have the retroactivity, and Termination shall not have retroactivity and will only affect the future. The stipulation of Contract Law of PRC concerning the legal effect of restoration original condition and taking other remedies after the rescission of contract because of subjective factors is lack of specification and shall be further divided. The author also holds the view that the damage compensation shall include the benefit of performance besides the compensation of actual loss. To capitulate, the author recommends that the system of contract rescission shall be consummated in the future civil code.