Analysis On Precontract Theory

Precontract is a promise to make a forward contract, whose purpose is to make sure the forward contract will be concluded, through a precontract made by the interested parties to bind the concerned person, as the conditions of concluding forward contract are not ripe. The thesis is to construct a systematic structure of precontract theory and use subscription book for commercial Houses as an example to analyze this theory.At first, in chapter one, author analyzes the precontract's legal concepts and its legal characteristics, and points out that the precontract is a contract in its nature, however it hasn't the characteristic of human being's nominate transaction. In the same chapter, author also describes precontract theory's legislative history and theoretical basis to state its foundation in legal field.Chapter two is to discuss precontract's structure of effective conditions and its classification. When a precontract is confirmed, we must find the parties' true intention through it, and grasp all information of the contract. If we can make sure that the contract has prescribed the obligation to conclude a forward contract, the precontract can be regarded as one that has been concluded successfully. Then author states two different classifications of precontract by American scholars and French scholars. Their difference lies in their criterion of classification.After that, Chapter three is to discuss the effect of precontract. Author states the content of effect of precontract and answers the following questions: Can specific performance be the remedy of breach of precontract? What interest will be compensated in breach situation? And how the deposit applies in precontract?At last, in chapter four and chapter five, with the comprehension of the precontract theory, the author uses the subscription book for commercial houses as example to further analyze the application of precontract theory in legal matters of real world. Combining the theory and practice, author hopes that this thesis can help readers understand the theory of precontract better.