The predictable rule is an important legal rule to limit the scope of damages for breach.It has been universal established in civil law of many countries in the world.This paper analyzes the predictable rule from the two perspectives of law and economics.Then the paper introduces the historical connotation of the rule by reviewing its formation,the present state of legislation and its base of jurisdiction.This paper also analyzes the predictable rule in China's Contract Law with respect of the components, the application conditions,the relative laws and the system environment, and points out the inadequate application of the rule in lawmaking.Finally,the paper puts forward some steps to consummate the predictable rule in legislative and judicial levels.
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