On The Lifting Of The Contract

The dissolution of contract is an integral part of Contract Law. Laws in most countries and some international treaties regulate the dissolution of contract. This article compares and analyses the dissolution of contract in major countries, points out the defect in China's law system in the same field and puts forward its solution, which may be referenced for modification of Contract Law of China. The article studies the matter in four aspects as follows:Firstly, the article narrates the occurrence of the dissolution of contract and recalls the legislation and definition of the dissolution of contract in the two law systems. The dissolution of contract is a kind of countermeasures taken by the victim of certain breach of contract. Most countries adopting Continent Law System consider such dissolution is a unilateral action. However, the article thinks the dissolution may be divided into two types: unilateral dissolution with notice and bilateral dissolution with agreement. The Civil Codes in most countries adopting Continent Law System divide the dissolution of contract from the termination of contract so as to describe more accurately the right & obligation relationship between the parties concerned. However, Contract Law of China does not make that division. The difference between the dissolution and the termination of contract is that the contract is canceled now or future.Secondly, the article discusses the legal conditions of the dissolution of contract. After comparing the laws and regulations in major countries and international treaties, the article points out that China may regulate the dissolution of contract in the countermeasures against breach of contract, instead of the termination of contract right & obligation. Besides,most countries do not consider force majeure as one the legal conditions to dissolve contract, which is utterly different from Contract Law of China. The regulations concerned in our law may cause confusion.Thirdly, the article studies the execution of the right of the dissolution of contract. Since there are not detailed regulations on the dissolution of contract in Contract Law of China, it seems impracticable sometimes. The article suggests Contract Law of China should be perfected on the dissolution of contract.At last, the article analyses the effect of the dissolution of contract. The dissolution of contract brings an effect that the contract is canceled. Item 97 of Contract Law of China regulates the dissolution of contract should trace to the past. There is no obstacle to restore to the original. The dissolution of contract should bring the two parties concerned to the original status before the signature of contract. The dissolution of contract will induce the obligation of compensation for loss, which should include contingent benefit after the execution of contract but now exceed the amount either party foresees or should foresee.The article analyses the practice problem on the dissolution of contract in China's law system, recalls the history of the dissolution of contract, compares different regulations between major countries of two law systems and international treaties, points out their advantages and disadvantages, and finally gives a solution to correct the defect in China's law system on the dissolution of contract.