Research On Fundamental Breach Of Contract

The mechanism of fundamental breach of contract was derived from British law and adopted by CISG, and had then been developed into an international term. This mechanism plays an extremely important role in CISG. Generally, the mechanism is invoked where one party violates the most important and fundamental terms of the contract and the other party thus has the right to claim damages and to declare the avoidance of the contract as well. The Contract Law of the People's Republic of China (Chinese Contract Law) also provides this mechanism in its Article 94.The thesis undertakes a profound and systematic research on this mechanism, points out some defects of the Chinese Contract Law and puts forward some concrete suggestions for its perfection by comprehensively analyzing the mechanism.In addition to the preface and conclusion, the thesis comprises four chapters:Chapter One provides an international overview of fundamental breach of contract. This chapter carries out the introduction and analysis of the forms of fundamental breach of contract in the common law and the civil law countries as well as in the relevant international legal instruments from the macroscopic point of view.Chapter Two explores the mechanism of fundamental breach of contract under CISG. The chapter discusses the breach of contract based on the analysis of constituting elements, classification and legal consequences by tracing the legislative history of CISG.Chapter Three discusses the legal value and significance of the mechanism of fundamental breach of contract. The chapter explores the legal value and significance of the system from the perspective of economics and law.Chapter Four deals with the related stipulations of fundamental breach of contract under Chinese Contract Law. The Chapter starts with the analysis of the status quo and necessity of transplanting the mechanism of fundamental breach of contract into Chinese Contract Law. After discussing the defects of the mechanism in Chinese Contract Law, the author proposes relevant suggestions for its perfection.