Liquidated Damages In The Foreseeable Rules Of Research

In variable market, transaction has been confronting with unanticipated risk. Supposing the breaching party bears all the consequential damages incurred by breach of contract, it is to either depress transaction parties or increase transaction cost, which will result in economic stagnation and resource waste. Consequently, restriction rules of damage were invented to limit the compensation scope. Among them, the Foreseeability Rule is widely adopted. The Foreseeability Rule is stipulated in Contract Law of People's Republic of China in few words, so it is not able to be applied well due to lack of detailed applicable standards.With comparison method, the Foreseeablility Rule was reviewed in respect of its source of law, theory basis, exceptional situation and theoretical structure. Through analysis on its limitation and relevant remedy, the writer of this article tried to build the frame of Foreseeablility Rule under the current contract liability system of Chinese Contract Law and bring forward proposals on its legislation and justice consummation. The structure of this article is as follows:In Chapter 1, the Foreseeablility Rule was introduced from 3 points of view -source of law, theory basis and exceptional situation. Although the Foreseeablility Rule has the same source of law in the two main Legal Systems, there is much difference between the legal systems.In Chapter 2, the theoretical structure of the Foreseeablility Rule was emphasized and followed by the limitation and relevant remedy of the rule. In order to make full use of the Rule, the frame has to be built carefully.In Chapter 3, it was about how to build the frame of Foreseeablility Rule under the current contract liability system of Chinese Contract Law. On one hand, the Foreseeablility Rule is applicable to all of the four kind of Chinese contractual liabilities with correspondence in their theory basis; on the other hand, fulfilled the content of the Foreseeablility Rule under Chinese Contract Law through analysis on foresee body, foresee time, foresee object and standards of foresee.In Chapter 4, the Foreseeablility Rule was comprehended with its actuality and consummation from both the legislation and justice point of view. The Foreseeablility Rule needs to be improved with overseas legislation and justice experience since its stipulation in Chinese Contract Law is quite simple at present.