Sales Of Commercial Fraud And Punitive Damages

With the gradual perfection of market economical, system ofsocialism in China, the commercial housing market is becoming moreand more active. The same time, the disputes arising from thetransaction of commercial housing are increasing, in which some housepurchasers are swindled and their interests are damaged. In China, thecourts almost haven't applied the Law of the People's Republic of Chinaon the Protection of Consumer Rights and Interests to settle the disputesthereof, which is also the violent controversy in the field of legal study.With the focus on the fraud in dealing of commercial residentialbuildings, this paper puts emphasis on the clearly-specifiedcircumstances adopted into the "Interpretation on the Legal Applicationto Cases Hearing of Real Estates Dealing Contract" by the SupremeCourt, under which the purchasers could claim punitive damages againstthe sellers' fraud, and addresses a series of the legal issues concerningthe application of the punitive compensation to the commercialresidential buildings dealings. Also, this paper puts forward therationality and significance of punitive compensation institution adoptedinto the commercial residential buildings dealing. Moreover, this paperprobes into the "Interpretation on the Legal Application to CasesHearing of Real Estates Dealing Contract" by the Supreme Court,discussing several legal issues and putting forward the proposalsaccordingly. This paper is comprised of 4 parts, amounting to 34,000words.Part one: Selling and fraud of commercial residential buildings. Inthis part the writer first gives the conception of the selling and fraud ofcommercial residential buildings, and then summarizes the basicelements of fraud which are: (1)Intention of fraud of real estateagency; (2)Actual deeds of fraud; (3)The buyer's willing is unrealbecause of fraud. This part also gives the standard and method to definea fraud. Part two: Stipulation of fraud by law. By using comparison tointroduce the different stipulation of fraud by law in common lawsystem and civil law system, and analyzing the regulation of fraud inGeneral Principles of the Civil Law of the People's Republic of China,Contract Law of the People's Republic of China and the Law of thePeople's Republic of China on the Protection of Consumer Rights andInterests, the writer proves it is better to use the punitive damages tostipulate the fraud.Part three: Analysis of the punitive damages system. In this part, thewriter compares different rules about the punitive damages systembetween the common law system and the civil law system, and pointsout that we can set up our new punitive damages by referring to foreignrules. This part also contains the writer's analysis and demonstrationwhy punitive damages is not some kind of responsibility based on civillaw but on economic law.Part four: The application of punitive damages on dealing ofcommercial residential buildings in our country. On analyzing thedefects of "Interpretation on the Legal Application to Cases Hearing ofReal Estates Dealing Contract", the writer gives his construction in fourfields on how to use punitive damages to solve disputes arousing fromthe real estate agency's fraud in dealing of commercial residentialbuildings.