On The Exercise Of Statutory Right Of Rescission

Contract is "law locks" between the contracting parties, the contract which has been established and effective is legally binding on the parties. However, in the course of performance of the contract, there are some special circumstances making the contract can not continue to be performed or be fulfilled meaningfully. The system of Legal rescission is an effective remedy for the parties to get rid of constraints of "incomplete" contract. But, the right of legal rescission is a destructive right, which eliminates the contractual relationship, and impacts the interests of the parties seriously Irreparable damage would be brought to the contracting parties if the right is improper exercised, market order may be endangered as well. Therefore, the right of legal rescission must be regulated. The article94to article97of China’s "Contract Law" regulates the reason to legal rescission of contract, the exercise period of the right, the exercise procedures of the right, and the effectiveness after the contract be terminated."contract law judicial interpretation (b)" regulates the right of objections of the contract counterparty additionally.But in the complicated judicial practice, the application of these several provisions can’t solve the problems obviously, which bring judicial practitioners some confusion.Above all, subject to the right of legal rescission, the period of the rescission right, termination of the contract mode, when the contract is terminated and so on, all these issues are vague or do not have relevant regulations.This paper will explore above questions and put forward the author’s opinion in order to improve the system.