Fundamental Breach Of Contract On Our Country "contract Law"

The fundamental breach of the contract that was originated from Britainhas been accepted by most of legal systems in majority of countries nowadays.The reason why this legal system has been adopted internationally is that it playsa key role in regulating trade actions, protecting market orders and assuringtrade security. In China there is also place for it in the Contract Law. This paperbases on documents about fundamental breach which has been worked before,trying to describe what is the fundamental breach, what is its function and legalconsequences. As doing this, it is very useful to make the adoption of thefundamental breach in China's civil law system more reasonable. Four partsconsist of this paper, totally about 28,000 words.The first part is the outline of the history of fundamental breach systemdevelopment. This system appeared in the Common Laws in 19th century inBritain. Because of advantages of regulating the actions of one party who breaksthe contract, it has gained popularities in other countries. The essence offundamental breach is a kind of remedy for the rights which comes from thecontract protected by the force from law. The core of this legal system is todefine the very action belongs to the fundamental breach from many sores ofviolating contract actions. Following this, we can conclude that researches aboutthis system focus on to what extent an action will be defined as an action of thefundamental breach.The second part explains why the fundamental breach is introduced intoChina's Civil Law though it doesn't share commons with the whole legalsystem. It is obvious that whether one system should be adopted by othersystems is determined to its function. The fundamental breach has powerfuleffectiveness on restricting one party's behavior of violating contract. China'sexecutive Contract Law system has shortcomings that it can't overcome byitself. Therefore, it is necessary for putting fundamental breach into practice torectify the faults. And there is also a problem should be resolved, that is wherefundamental breach should be settled down. As a stranger for existed legalsystem, the fundamental breach must find its proper position. The third part describes the relationship between the fundamental breachand the rescission of contract. Their relationship used to be described as: causeand be caused, limit and be limited. The writer thinks this description is, in fact,one that describes the same process of same thing in different aspects, ff anaction of violating contract can be called "fundamental breach", it must be anaction which breaks the essence of contract so badly that the contract can't existanymore. In other words, fundamental breach happens, rescission of contractwill happen. On the contrary, in the condition of violating contract, rescission ofcontract is the destination of fundamental breach. Writer thinks fundamentalbreach and rescission of contract link each other very closely. They stay togetherand cannot be tore apart.The final part is evaluation and overlook of fundamental breach. This partanalyses shortcomings of fundamental breach in China's Contract Law. Thefault doesn't come from the feature of fundamental breach but from conflict oftwo different legal systems. The key to resolve this problem is to givefundamental breach some characters that will help it get along with China'slegal system. Writer gives several suggestions: to keep adopting other content offundamental breach into legal system to build a total system of fundamentalbreach, encourage people to obey the disciplines of civil actions. By doing so,writer believes that fundamental breach will gain more and more concems notonly from law makers and law executives but also from citizens, eventually,fundamental breach will do great help to the evolution of our legal systems.