The Punitive Damages System. Contract Research

The system of punitive damages which has the function of compensation , penalty and repression is a corresponding system of compensatory damages .It is applied in some fields in common law countries and introduced into civil law countries for the past few years. There are some opinions of support and criticism along with the appearance and development of punitive damages.There are three parts in my paper .In the first part , the opinions of opposition and the support and the action of punitive damages are analyzed so that we can know the value and effect of punitive damages. There are some flaws in the theory on breach of contract for efficiency , explain that punitive damages is suitable and its value in the contract domain by the contrast . The second question discusses that whether the behavior of breach of contract constitutes tort and point out punitive is suitable of not only tort but also breach of contract.The second part of the paper discusses the requisites in constitution of punitive damages and situations of application in contact field. The article analyzes four situations that the party who breaks the contract has powerful ability of negotiation and force ; the party who breaks the contract with the trick; there is more chances of avoiding penalty for the party who breaks the contract ; the party breaks the contract in which the other party wants the psychic benefit . Punitive damages makes the party be aware of that the profit of breaking contract were no more than fulfilling the contract, as a result , the party of the contract would observe the faith so that the cost of fulfilling the contract deduces and the efficiency of whole society would rise.In the last part, the article discusses the amount of punitive damages, in order to the good action of punitive damages and punitive damages could complement compensatory damages so that it would perfect the system of compensation .