Liquidated Damages Foreseeability Rule

This thesis mainly discusses that the rule of foreseeability is how to determinewhat kind of consequential damage can be compensated and the relationship betweenthe rule of foreseeability and causation when determining the scope of liability fordamage for breach of contract .The thesis comprises preface,main content and conclusion.In the Preface ,the author shows clearly the theme of this thesis.The main content is divided into four parts.In Part Ⅰ, the author mainly introduces the history of the rule offoreseeability,which is how to be established in French Civil Code and how todevelop in English law. Then,the author finds out that the rule of foreseeabilityinvolves different connotations between the Civil Law system and the Common Lawsystem.In Part Ⅱ, the author detailly discusses the basic theory of the rule offoreseeability. By discussing its rationale and prerequisites, we can find that therationality of the rule of foreseeability is rooted in the fact that it is in accordance withequitable conception and the principle of honesty and credit.In Part Ⅲ ,the author elaborates the problem how to apply the rule offoreseeability, and holds that determinate damage is its premise. After defining themeaning of damage ,the author points out that the rule of foreseeability is how to playa role in ascertaining liability for consequential damages. In addition ,the authoranalyzes some exceptions in which the rule of foreseeability can not be applied, whichindicates that the use of the rule of foreseeability is limited by other rules.In Part Ⅳ ,the author concentrates on two related problems with the rule offoreseeability. One is the relationship between the rule of foreseeability andcausation. The other is on the the function of the rule of foreseeability in contract lawand tort law .The author holds that the function of the rule of foreseeability indifferent fields is the same although it is of different connotations.The last part is Conclusion. The author concludes that the rule of foreseeability isa most important criterion to judge whether there is causation or not. The party ofbreach of contract is not responsible for the damage caused by unforeseeable causesbecause it is too remote to be foreseen.