Studies In The Damages Of The Breach

Damages has been applied in the way of most important and most efficiency. It takes effect during the civil law and practice of jurisdiction. For the purpose to make the party injured to archive the outcome of the contract as it was and to balance the interests between the parties after the breach of contract. Damages of the breach acts as the core part in the Contract Law. By handling correctly and study of such liabilities of damages , it can protect the rightful interests of the party, punish the breach, encourage the transactions and maintain the rules of the market to maxim the principle of fairness in the law system. We start the theory of damages in this paper, and further discuss the principles applied practically in the countries'law system within the scope of damages of breach contract , also, our country's law system was connected to this topic by the summary and analysis.There are 5 parts in the paper.In the Preamble of the first part, author starts with the issues arising from the daily contract negotiation job that she performs, lists the kinds of issues that the damages may have, therefore, results the topic under this paper and expects that it can be some help to have the answers of those aforesaid issues.In the second part, author starts with the basic theory of the damages of the breach, discuss the two types of the damages of the breach, and comb the concept, features and components of the damages as well. And further discussed four components of the damages ( breach, damage, the consequences linkage between breach and damages, exemption). Meanwhile, for the most popular and wide discussed topic-damage, author studies from its concept and classification, especially for the classification of damage, author compares the kinds of classification in countries, with the view in the damage of the breach, comes the result that direct damage, actual loss, returnable interests and reliable interests usually can be remedied. Regarding the consequences damage, obtainable interests and expectant interests, given its identification will be more complicated, thus they need to be remedied in a appropriate approach by the consequences connection with the relevant rules.In the third part, the basic rules to identify the scope of dames of the breach are discussed , they are the Rule of Full Compensation and the Rule of Foreseeability. The Rule of Full Compensation acts as the key principle in the damage of the breach has been accepted by countries'law system and the practice of jurisdiction, and was adopted by our country's law system as well. But the applying of the rules of total compensation dose not mean that all the loss from the victim can be remedied, otherwise, laws become the tool of guarantee then. Thus the appropriate limitation is needed in the damage of the breach, so another important rule ( Rule of Foreseeability) is discussed by the study of its component . Notwithstanding the Rule of Foreseeability was applied in our contract of law, there is no distinguish to differ the willful misconduct and negligence of the party which have further room to be improved.In the forth part, the additional rules like the Rule of Mitigation of Damage, the Rule of Counterbalance of Error, the Rule of Counterbalance with Loss and Profit, are discussed by comparing the countries law system. Despite that those four additional rules are so popular applied with the priority comparing with the two basic rules mentioned the above section, as the rules to stratify the kinds of issues resulting from the damages of the breach, they are becoming useful more and more. In our contract law, the latter two Rules (the Rule of Counterbalance of Error, the Rule of Counterbalance with Loss and Profit ) do not be stipulated explicitly by the law yet , they should be adopted by the current legislative system and practice of jurisdiction in our country.In the fifth part, as the summary of the paper, back to the issues highlight in the Preamble part, author summarize the scope of the damage of the breach and rules on the scope of the damages of the breach, links to the current status of our country law system and shortness in connection with above two mentioned areas, some suggestions was proposed to improve the shortness that our country's law system may have.