On Damage Compensation In The Discontinuation Of Statutory Default

The regulations of compensation for damages of contract rescission is more generalin our country’contract law.Especially there are not clear specific provisions forrange,type and calculation of standard of compensation for damages and the rules abouthow to make compensation.Academic circles regard this question argumentcontinuous.There are different authentication conclusions to the same case in the practicaloperation of the contract rescission because of different standards.This situation hurts theobservant party interests, the legal authority and the judicial justice. This paper studiedthe three respects of retroactive effect of contract rescission,the co-exist of contractrescission and compensation for damages, the scope of compensation for damages ofcontract rescission,in order to straighten out the relationship between contract rescissionand compensation for damages under the condition of no clear regulations.This can bettersolve the issue of damages of contract rescission in the theory and practice., protect thelawful rights and interests of contract parties and maintain fair and legal authority. Theresearch and standardization on the issue of compensation for damage of contractrescission should be improved with continuous exploration and practice in order to makeup for the defect of the legislation of our country.Only in this way the legal authority canbe maintained and the system of dissolution of the contract can play a greater economicand social benefits.Besides the introduction and the concluding remark part, this article divides intothree chapters.The first chapter is about the retroactive effect of contract rescission.Thesecond chapter is about the co-exist of contract rescission and contract damages.The thirdchapter is about the scope of compensation for damages of contract rescission.The firstchapter studies the retroactivity of contract rescission from the basic theory of contractrescission.Discuss respectively on four theories of "direct effect theory""indirect effecttheory""compromise theory" and "liquidation relationship theory" about retroactiveeffect of contract rescission.Make the analysis on the regulations on the retroactive effectof contract rescission in the contract law of China,illustrate the controversy caused by"distinction theory" and propose own viewpoint from the angle of the legislative valueand solving practical problems. The second chapter analyses the relationship betweencontract rescission and compensation for damages.Firstly,it carries on the briefelaboration to different theories at present,including the Creed of Selection and the creedof co-exist.The legislation reason of the creed of co-exist can be divided into the theory of Prospect interest and the theory of reliance interest.Then it discusses the value of co-existof contract rescission and compensation for damages in detail from the angle of rightsprotection, justice and Practice.Chapter three discusses the range of compensation fordamages of contract rescission.First of all,it explains interest structure of contract andcompares the different regulations in Civil law and common law.Then the articleelaborates the focus of debate about whether the prospect interest should be included inthe range of compensation for damages.And it analyzes the reason why author considerthat the prospect interest should be contained in the scope of compensationspecifically.Based on the standpoint,author emphasizes the restrictions on compensationfor damages of prospect interest.