Research On The Scope Of Damages For Cancellation Upon Breach Of Contracts

When the purpose of one contract can't be realized because of actual breach by one party of the contract, the other party can exercise the statutory right of cancellation to terminate the contract, the problem is that after the cancellation of the contract,whether the other party has the right to claim damages? If so, how should the scope of damages be determined, whether in terms of the performance interests or the reliance interests; whether the benefits available to be included in the scope of damages; how about the damages beyond the breach of the contract? As to the first question, although favored by most scholars, in fact, the both co-existence has become the common practice among most countries, also it has been recognized by the "Civil Code" and "Contract Law of our country, while the scope of damages for cancellation upon breach of contract hasn't been specified by our law, neither the academic theory nor judicial practice has consensus on this problem. However, the solution of the problem is of great significance both in theory and practice, so the paper is trying to study this problem, through the introduction of relevant theories and legislations of many countries as well as the carding and elaborations of the basic theories.The paper is to solute these two questions:one is that whether the scope of damages for cancellation upon the breach of one contract is in term of the performance interests or the reliance interests; the second is that whether the scope of damages includes the benefits available and the interests beyond the breach of the contract. This paper consists of five chapters.The first chapter is the introduction part, which is mainly derived from a real case to lead the problem to be solved in this paper, and thus specifies the study scope of this article, which is limited to the scope of damages for statutory cancellation upon the actual breach of the contract.The second chapter mainly discusses the co-existence of contract cancellation and compensation for damages. Through the introductions and the comments of two theories, the part makes it clear that side by side is a trend of the relationship between contract cancellation and compensation for damages.The third chapter mainly discusses the standard of the scope of damages for cancellation upon breach of contracts. This part firstly defines the relevant legal terms of the scope of damages, then introduces and comments on two enactments of legislation upon the standard of the scope of damages, cards and reconstructs the basic theories which affects the scope of damages, finally concludes that the scope of damages for cancellation should be in terms of the reliance interests.The fourth chapter mainly discusses the concrete definition of the scope of damages for cancellation upon breach of contracts. Based on the standard of the reliance interests,this part refutes the opinions that oppose to compensate for the benefits available,which leads to the conclusion that the benefits available should be concluded in the scope of damages. Meanwhile, as a result of breach of the contract, the interests beyond the breach should also be brought in the scope of damages.The final chapter is the response and conclusion part. The response part is an response to the case that was described in the introduction part,which points out that the court should support the requests from the observing party for compensation of the benefits available as well as the interests beyond the breach.The conclusion part is a general summary of the text,and then points out that the scope of damages for cancellation upon breach of contracts is also limited by general constraints rules of damages.