A Comparative Study Of Fundamental Breach Of Contract

Foreign trade is the important driving force of the development of the economy in China. Since joining the world trade organization (WTO) on December 11,2001, our foreign trade grows rapidly, and China has taken the first place in goods trading contest. The trade surplus of Chinagrows fast these years and China has become the world’s top holder of foreign currencies. However, the trade friction is also increasingin the process of foreign trade growth. In order to handle trade frictions and to expand foreign trade, the key is to improve the level of the rule of law, especially trade related legal system in our country.In specific cases, contract is the connectionof the Chinese and foreign traders. As a very importantpart of civil law, fundamental breach system standardize the rights and obligations of the parties to a contract, whichreceivedmuch concernssince it was born. Fundamental breach first appeared in British case lawin the 19th century. Thereafter, in combination with the tradition of continental law system and Anglo-American law system, "the United Nations convention on the international sale of goods" firstly defines the fundamental breach system, which has also had a great effect on the national laws.In this article, relevant regulations of the Anglo-American law system, continental law system and the Convention will be gathered, to contrast its constitutive requirements and forms of breachand study further on the differences of two law systems. Based on the comparison, this paper will research in ChinaContract Law on the rules of the breach system and put forward my own suggestions.