On The Exercise Of The Right Of Termination Of Contract

is the law which provides the basic rules and institutions of contract and contract relationships. The sixth chapter of the law provides rules and institutions on"the exercise of right to rescind the contract". This right and its exercise of Chinese contract law are compositions of the valid law orders at present. But what is the effect of the criterion established and its practice? This paper takes the observation and study from two aspects. On one hand, under global vision, the paper study the right to rescind the contract with the comparison of the Chinese and foreign contract laws as well as the international covenants and rules to get a clear view of the common reasons or conditions (including the conditions and reasons of the practicing of the right to rescind the contract which bases on agreement or law ), the existence or exercise terms of the right (scheduled period), the restriction of the right, the exercising methods and procedures of the right, the lost of the right, the exercise effect of the right and etc.. So people can understand the characteristic, axiom and meaning of this right, know and practice the exercise criterion of rescission right correctly according to contract law by comparative approach. The exercise criterion of the right is centralized in the 96th and other articles in the China's Contract Law. The exercise body is one part in the agreement (the creditor); the exercise condition and act form is that the party with the right of rescission notices the counterpart with an expression of contract rescission when the right came to effect by agreement or law; the result of this is to rescind a contract when the notice arrived. On the other hand, the paper analysis and study the judicial interpretation, the discussions and cases related with the right to rescind the contract. Through the examination of the exercise of the legal criterion, the paper argues about the shortage of its efficiency. And the author discovered that the main problems are 1) improper exercise of the right of the party with the right of rescission which leads to filing a lawsuit to rescind a contract; 2) improper exercise of the judge which leads to a contract rescission by legal judgment. These are questioned in this paper to attract the attention of legislators, judges, lawyers and other people. This paper also studied the origin of these questions and gave some suggestion and advice to continue the study, to better the law of contract rescission, to improve the judicial situation, and to standard and unify the exercise of the right to rescind the contract. So the contract and contract law can make a more active contribution to the building and developing of Chinese market economy system..