On The Breach Of Contract Damages To Determine The Scope Of Compensation

Compensation for breach of contract is the most important, most basic and most normal mode of contractual liability, and the key to achieving it's functionis the delimitation of damages for breach of contract--which damagesshould be compensated, which extent should be achieved, we can be made up for the damages of creditor, in order to make him back to the normal status of adequate performation, and on the other hand, give the debtor a reasonable extent of compensation for breach of contract, and then, realize the contract law's function that protect the safety of transaction and promote business. On this issue, this article discussed it from six parts, and there are about 41000 words in all.The first part is concerned with the supreme idea of the delimitation ofdamages for breach of contract--the principle of complete indemnification.As the premise of delimitation of damages, this part discusses the nature, the aim and the meaning of compensation for damages at first, then points out the establishment of the principle of full compensation in other countries from comparative review. In the end, the author discusses the intention and meaning of the principle of full compensation.The second part is concerned with positive factor on the delimitation of damages for breach of contract That is, it discusses which damages should be compensated. This part discusses this problem from the concept of damage, the classification of damage, the traits of damages which should be compensated and the damages that should be compensated in the scope of damages in our country.The third part is concerned with the negative factor of the delimitation of damages for breach of contract, that is, examines the restricting methods of the scope of damages. At first, according to the principle of full compensation, the author points out that the defaulting party should compensate all the damages which is caused by his non-compliance. However, according to the bifurcated approach to problems of causation, the scope of damages that defined by the "cause in fact" is provided with the probability of enlargement infinitely anduncertainty, so it is necessary to restrict the scope of damages by some legal means within the meaning of techniques of law. Meantime, it is unfair that the risk of transaction is only undertaked by the defaulting party, so it is necessary to make use of some legal means to delimit the reasonable damages for the defaulting party. Besides, the author examines the basic extricting methods of the scope of damages in the France law, Germany law and Anglo-American laws, and some related international conventions according to comparative study.The fourth part discusses the conventional damages. The author explicates the concept, theoretical basement and meaning of compensation under contract, and analysises the validity of compensation under contract, then points out the balance of legal value on the related provisions.The fifth part is concerned with the assessment of damages for breach of contract The author discusses the factors that influence assessment of damages, comments the methods of assessment of damages, and explicates the time of assessment of damages.The sixth part is epilogue. After summarizing the preceding five parts, the author thinks that the delimitation of damages for the breach of contract is related to the judgment of legal value, the assessment of interests and the consideration of legal policy and legal technique in operation, and the purpose is to establish the reasonability in the aspect of value and the aspect of application and operation. In this means, we can realize the function of contract law to construct a scientific, reasonable system of the rule for the acts in market.