Research On Compensation For Damage Of Reliance Interest System

The basic aim of Chinese reform is to develop a market economy, and the action rules of subject in the market economy in theory have been clear: individuals should be free, enterprises should be autonomous. But the free person and the autonomous enterprises should bear the consequences of their actions, regardless of their own consequences is beneficial or harmful. But the awareness of rule by law, the concept of contract, and the spirit of bearing their responsibility that a market economic system require have not really formed in the Chinese society.Reliance interest is often used to discuss the above issue in jurisprudence and case in civil law and common law. However, they have obvious differences on the concept and application of reliance interest. The concept of reliance interest has not been defined directly in China's Contract Law, but it has been recognized in jurisprudence. The general provisions on compensation for breach of contract are not operated well in judicial practice. Therefore, it is necessary to further study the content of reliance interests, it is introduced into the compensation system of our reliance interest, to strengthen the legislative operation.The text is divided into five parts:The first part is the theory of reliance interest. The content of reliance interest in Civil law and common law is obviously different, the scholars of civil law believe that the reliance interest damages in the contract apply to form, invalid or withdraw. The scholars of common law believe that damages of the reliance interests also apply in the event of default. I believe the reliance interests can actually carry out the stages of the contract. The theory has been produced, which make the legislative practice have a major impaction. But it is not perfect, we should be fully aware of its limitations, such as legislative technical complexity, between the contractual liability and violation is not clearly different and the opportunity cost is included into the contracts, which has defects. Thereby, these reasonable factors should be absorbed to construct our damages the reliance interests system.The second part is the reliance interests on compensation system of the breach of contract. This part relies on the necessity of introduction the reliance interests into compensation system. That is, in the case of default the compensation of reliance interests can not be applied in China's Contract Law. And the general terms related to damages is operated difficultly, which will not protect creditors'right comprehensively.So, it is necessary to draw on some perfect factors. First, the "presumption of profit" rule in Germany. If the expenditure is to make a profit, and it can be compensated from the future earnings, the creditors may seek to compensate the expenditures. Second, rules of the reliance interests damaged in common law, that is, to make the victim return to the state of the contract entirely carried out. In order to improve China's damages related to the relief measures, which help strengthen the operation of justice.The third part is the legitimacy of the damages of the reliance interests. The modern concept of contract changes from the freedom of contract to the socialism of contract, and the real justice of the contract, to reveal the theoretical value of protecting of the reliance interests.The fourth Part is judicial application of damages of the reliance interests. First, by introducing the four basic conditions of establishing of damages of the reliance interests, that is, the other party's reliance interests have damaged, the parties can predict the behavior based on trust of the acts or not. When the parties conclude the contract, between the trust and the offer have a causal relationship, Have the necessary of compensation for the damage of the reliance interest. Second, on specific terms including predictability of the rules, that is, the amount of compensation is limited, which can be controlled by the debtor and the scope can be predicted. And rules of reduce the loss ,after the defendant is in default, if the plaintiffs still have the opportunity to make up for goods or services through other ways, then he should grasp the opportunity, only the plaintiff should take appropriate measures to mitigate the loss of reliance he can seek the compensation of the expect interests. Last, the different of the reliance interest damage and the risk of transaction, whether the principle of good faith is breached or the trading habits is applied.The fifth Part is that China's system of reliance interest damages is insufficient, so it should be perfected. Now the culpa in contrahendo and the breach of contract are respectively regulated in the contract law. Creditor's right can not be protected fully, so, we should design workable regulations. Creating of reliance interest, as relief standards, which make it cover through the whole process. That is,not only the positive interests should be protected, but the obligation of the interests of the former contract is kept. The parties bear the responsibility based on breach of "good faith and credit",breach of good faith is based on the "legal obligation" of the reliance interests, which products liability for damages, they together constitute the responsibility on the contract law.At present, our country'credit crunch is more serious, which becomes the barrier in the development of the market economy. We should research deeply the faith to draw up the feasibility legislation rules in order to perform the effective protection for it. This article has made further discussion regarding this, but it also has the insufficiency , which needs to perform in the later research to consummate.。...