On The Application Of The Punitive Damages Liability In Contracts Of Sale Of Commercial Housing

China's market economy is booming with much more frequencies and complex in its market transaction. Under this situation, compensatory damages won't be able to balance the interests of the relationship between equal civil subjects. In the real estate market, some wrongful real estate developers take advantage of their own superior status to implement malicious default and fraud in order to reap economic profits, which seriously damages the legitimate interests of the buyers and seriously disrupts the order of China's real estate market transactions. In the course of commercial transactions, it is not enough to safeguard the legitimate interests of buyers by the binding of the contracts or abiding by honesty and credibility. Laws and regulations of the state are powerful weapons of buyers to safeguard their own interests and guard against the risks. Therefore, applying the punitive damages liability to China's contacts of sale of commercial housing is of great importance.In 2003,"The Supreme People's Court's explanation on the application issues of the dispute of contacts of sale of commercial housing cases"was taken into effect formally. The judicial interpretation clearly lists the applying situation of punitive damages, which first clearly definitely regulates the application of the punitive damages from the perspective of judicial interpretations and regulates the situation that housing condition is inconsistent with the contract. There is no lack of articles and books on the punitive damages in the contacts of sale of commercial housing in theory, but it's still not deep enough or comprehensive. This article, based on the summarize of researched results which analyzes the seventh, eighth, ninth, tenth, fourteenth of"The Supreme People's Court's explanation on the application issues of the dispute of contacts of sale of commercial housing cases"in details, researches the punitive damages liability in our contacts of sale of commercial housing application basis, application scope, application situation, determination of compensation and so on, and puts forward feasible solutions from the prospect of protecting the interests of buyers.This article is divided into five parts.The first part researches the basic of theory of application of punitive damages liability in the field of the contacts of sale of commercial housing. Proceeding form the basic intension and function, this article analyzes the conception and function of punitive damages. Then it explains legal basis and social basis of application of punitive damages liability on the field of the contacts of sale of commercial housing.The second part researches the application of punitive damages under the default of sellers. Firstly, it analyzes the actual situation of punitive damages. Then, it analyzes the definition of"failure to realize the purse of the contracts","failure to obtain the houses"to summarize the application of punitive damages during the breach. At last the article researches the remedy of the buyers.The third part researches the application of punitive damages under the fraud of the sellers. Preceding from researching definite situation of application of punitive damages under the fraud of the sellers, it analyzes requirements of punitive damages under the fraud of sellers and puts forward the author's view of who should burden the duty to the proof aim at"Fraud", whom the author thinks should be the real estate developers. At last the article also researches the remedy of the buyersThe fourth part researches the application of punitive damages of errors of the housing area. This section researches from the definite situation of punitive damages when housing area is in error and summaries the difference among the eighth, ninth, fourteenth of the"The Supreme People's Court's explanation on the application issues of the dispute of contacts of sale of commercial housing cases". Then it analyzes the particularity of punitive damages under error of the housing area. At last it puts forward the reasonable legal analysis about the remedy of the buyers.The fifth part takes assertion of amount of punitive damages as researching object. Firstly, it analyses the rules about the punitive damages. Then, referencing to the methods of American and Taiwan, China, it puts forward own suggestion and envisage about factors should be considered when defining punitive damages compensation. Finally, it analyzes the scope of"compensation of loss"and emphasizes that appreciation value of the house should be included in the scope of the"compensation of loss".