On Mandatory Contracting System

When an open market has been established, transactions linked by contracts became the main form in the economic intercourses. The huge productive forces created by the combination of free market and free productivity has greatly promoted social development But after entering the end of 19 century, along with the rapid development, economic crisis were repeatedly seen. Many medium and small size companies were bankrupted, while large enterprises unceasingly expanded their size and enlarged their capital through annexing smaller ones. All those things has accumulated the process of the conglomeration of the productivity and the capital, which has caused many large - scale monopolies. Besides, there are many large public utilities invented by the government such as electric company, water - supply company, transportation company, etc. But when the pubic want to sign a contract with those utilities, they may find that they are apt to encounter an unfair treatment that either accept some unreasonable provisions, or lose the chance of signing a contract Sometimes, the people's legal rights and interests are violated by those public utilities.So after the theories such as the theory of law and morality, the theory of injury principle and the theory of offending the dominant situation of law have been matured, the system of compulsory contracting was born. Under the protection of this system, both the people's rights and the social order have been better protected Now, in our country the system of compulsory contracting has also been establishedIn this paper, the author discusses some basic theories of this system such as its definition, its history and its guiding principles in order to do a more profound research. The author also analyses the situation, the concrete content and the legal liability of this systemThe whole paper is divided into 6parts, including the introduction, the first part, the second part, the third part, the fourth part and the conclusive partThe introduction is the summary of the history of this system; and in this part, the author briefly states its importance and practical significance.The first part concentrates on the basic theories of the system of compulsory contracting. In this part, not only the basic theories but also the relationship of the compulsory contracting and free contracting have been cleaned up.The content of the second part is the origin and the development of this system.