On Damages For Breach Of Contract

Compensation for damage is regarded as an important legal responsibility that parties bear whether in tort or in contract law, whether in China or in other countries, even in international organizations. In contemporary contract law, damages for breach of contract are considered as its key system. The theory of damages for breach is studied by many jurists as a very important task. In contract law practice, compensation, as one of the kinds of liability for breach, is applied more and more widely. In order to fit in with the needs of the society and economy development, only when its theory is studied more thoroughly and further explorations are made for it in judicial practice, will the legal systems of damages for breach be perfected continually. In China, we have made rapid progress at present in the legal systems of damages for breach, but much of its contents ought to be perfected urgently, to go with the real needs of legal practice and international developing tendency. To meet the needs of legal practice, Author of the thesis, in the view of comparative law, is trying to research and probe thoroughly and systematically into some of basic and important problems in the theory and systems of damages for breach. Besides foreword and conclusion, the whole thesis contains six chapters, but problems of damages for breach of specific contracts are not made research in the thesis. Each chapter is abstracted as follows:Chapter One——Outline of Damages for Breach of Contract.This chapter makes a research on basic theory, including the concept, characteristics, compare with tortuous damages, doctrines of liability fixation, conditions of application and different applications between compensation and other remedial measures, etc.. The part also discusses Theory of Efficient Breach and the system of substitutive liability in China, and Author suggests that the system should be perfected by absorbing the spirits of Theory of Efficient Breach.Chapter Two——Extent of Compensation for Breach ofContract: Principle of Full Compensation. In this chapter, Author considers damages to be made up of positive loss and prospective loss, on the supreme principle of compensation: principle of full compensation. This chapter also elaborates problems about Expectation Interest and Reliance Interest, makes a research on the specific extent of compensation for fundamental and anticipatory breach, and punitive damages for breach of contract, as an exception to principle of full compensation, in the last part of this chapter.Chapter Three——Restrictive Rules of Compensation forBreach of Contract. This part sets forth the rules of prospective damages, mitigation of damages, contributory negligence, balance of gains and losses. This part explains their basic theory, conditions of application and matters needing attention in practice.Chapter Four——Measure of Damages for Breach of Contract.This chapter studies on applying the basic theory and rules to calculate and determine the damages for breach of contract. This part contains application and validity of liquidated damages, calculating methods, prices, time and places of lawful damages and also explains measure of damages for some specific breaches.Chapter Five——Researches on Mental Compensation forDamage for Breach of Contract. First, this chapter, in the view of comparative law, makes a research on development of the system; second, makes demonstration of the present situation of legislation, studies of theory and judicial practice; then, Author analyses and puts forward the basic theory of the system; finally, author supposes the framework of the system of mental compensation for damage for breach of contract and proposes that we should draw up the system.Chapter Six——Perfecting China's System of Damages forBreach of Contract. Author tries his best to perfect the system and drafts relevant articles to legislative organization for reference.