Study On The Legal Consequences Of Contract Rescission

This paper is based on the current Contract Law of China, to define theconcept and the characteristics of contract rescission，to analyze the issuesaround the legal consequences of contract rescission, to show personal viewabout the specific contents and to build a theoretical system of the legalconsequences of contract rescission. In order to make efforts to the systemreconstruction in the process of compilation of Civil Code in China, and tomake sure that the legal provisions can be properly used in economic life, thisarticle mainly discusses three perspectives, that, legal consequences and theeffectiveness of contract rescission is not the same thing, contract rescissiondoes not necessarily lead to elimination of contract.In the first part of this paper, the conditions of contract rescission, thedistinction with other similar concepts, the significance and value of contractrescission will be discussed. In the second part, the concept of legalconsequences of contract rescission will be explained both in the broad andnarrow sense, the differences and relationship between the effectiveness andthe legal consequences of contract rescission will be discussed, and thelegislative status and the existing disadvantages of the legal provisions about the legal consequences of contract rescission in the current Contract Law inChina. In the third part, deeply research will focus on the effectiveness of thelegal action of contract rescission, the retroactive effect of contract rescission,and the argument about whether contract rescission leads to elimination ofcontract. In the fourth part, this paper discusses the other legal consequencesof contract rescission, mainly dividing into direct and indirect consequences.In this part, the nature and scope of restitution and the compensation fordamages are analyzed. What’s more, the author found evidence thatcompensation for damages after contract rescission and liability for breach ofcontract can coexist. While, when it comes to the final part, some concrete tothe termination of the contract by the legal consequences are analyzed. What’smore, some regularities are expected to be researching and summarized, whichcan play a guiding role in practice.