On The Predictability Rules And Substantive Causality In The Compensation For Breach Of Contract

At present,the main research content in the compensation for breach of contract in China is the research of the scope, the scope of compensation for breach of contract has different changes and characteristics in different situations, theoretical research on this problem can be a good guide to practice, and can solve complicated miscellaneous case in life. In addition, the research on the scope of compensation for breach of contract also has important social significance, it can achieve their pursued value of the compensation system, and can effectively protect the legitimate rights and interests of the parties. In practice, when to determine the scope of compensation for breach of contract, due to the different backgrounds of each country’s own legislation and different principles of compensation, so there is a big difference in the scope of compensation for breach of contract determined in various countries and regions. Specifically, in the world there are two kinds of compensation mode at present, the first kind is mainly represented by Germany, the compensation mode is called causal relationship model, this kind of mode is basically the same to the principle of complete compensation, the second is the compensation model, represented by the United States and Britain, this model is called predictable compensation mode, its compensation standard is whether the damage can be predicted when signing the contract.After 19 th century, most of the countries in the world scope has fully established the rule of predictability in the formulation of the laws or legal precedents. Since the Hadley v. Baxendale case in 1854, predictability rules in compensation for breach of contract has got wider applied, its influence is unprecedented and the applied scope of the rule are more common. If in accordance with the rules of Hadley, under normal circumstances the scope of compensation the plaintiff can get should be the natural loss caused by the breach, also should including the non-normal loss the defendant knows. Predictability rules mainly reflected in the “Contract Law” of our country, our “Contract Law” has carried on the detailed analysis and research to this rule. Reference with this, the author in this article has carried on the deep discussion and research to this rule, the research content include institutional practice and doctrine, and the origin,structure and defects of the causal theory, the author has carried on comparative analysis to the basic limit modes refer to the two kinds scope of damages for breach, consider that adequate causality in limited the scope of compensation for breach of contract is too broad,in contrast, predictability rules has play a more prominent role in limiting the scope of compensation for breach of contract.On this basis, the author agrees to China’s “Contract Law” provisions on predictability rules, think that it is appropriate to consider this rule as the limit of the scope of compensation for breach of contract, and put forward specific improvement suggestions to confront the obstacles this rule encountered in judicial application.