Anticipatory Breach Of Contract

Anticipatory breach of contract was originally a peculiar part of Anglo-American legal system. It originated from British legal precedent and then was adopted and enriched in US Contract Law. Now it has grown into a mature legal regulation that protects the right of contract expectance. This regulation follows the values of fairness, of social and economic benefits and of security. It aims at balancing the interest of the concerned parties of the contract. It gives a good expression of the principles of honesty and fairness. It plays a positive role in balancing the interests of both parties of the contract. Furthermore, it protects the rights of the interested parties in time, helps the parties to make full use of market resources and encourages them to maximize their transaction returns. So it is adopted not only in the Anglo-American legal system but also in the United Nations Conventions for the International Sale of Goods, and in the Unidroit Principles of International Commercial Contracts. It is also absorbed in Chinese Contract Law which has come into force since October 1st , 1999.The paper, on the basis of presenting a comprehensive discussion on the regulation of Anticipatory breach, conducts an analysis of Chinese legal terms about the regulation and gives some pieces of suggestion on how to improve it.