On The Liability For Fault

Traditional contract theories consider contract law simply as one for contractual issues and claim that the necessity of contract law governance depends on the exact existence of contract, i.e., no contractual liabilities lack contractual basis. Under the bargain principle of "no liability without contract", a party with faults and even causing damages to other parties when negotiating a contract is not liable if no agreement is reached in the end. The paper views such theories against the civil law principles of fairness and reasonableness, and the protection of legal rights of the parties and trade safety. Therefore we need an adjustment mechanics, namely culpa in contrahendo in continental law system, to reduce and prevent it.Experts worldwide differ a lot about the concept, forms, claiming basis and liability scope of culpa in contrahendo. The paper explores some critical issues including the concept, theoretical basis, establishment ingredient and scope of application of the theories of culpa in contrahendo on the basis of the theories, cases and legislation studies of various countries. The author concludes that culpa in contrahendo is an independent basic civil right the application of which should be reasonably limited; Articles for culpa in contrahendo in the Contract Law of the People's Republic of China is a brave innovation which has improved China's debt system despite its shortcomings.