Liguidated Damages In The Rules Of The Foreseeable

Among the limited scope of damages for breach of contract means, you canforesee the use of the rules is the world’s most widely used. The rule was firstproposed by French scholar Poitier in his1761book "On the law of obligations," abook made, and for1804,"the French Civil Code" adopted by Section1150, and inthe Anglo-American law has been significant development.Theory of predictable rules of origin mainly in the common law theory ofpredictable rules of origin, such as equity, said that efficiency and social needs of;civil law rules in the theoretical basis of the foreseeable, such as the autonomy thatthe causality, policy and the balance of interests, said that, and put forward the viewsof the author and supported by reasons. Predictable rules for trading activities for thepromotion of development and ensure the normal trading activities arising from thesignificance of the value of its main features can be reflected in the rational allocationof risk, and promote trade efficiency while also effectively encourage informationsharing, to achieve fair competition. Predictable rules form the main elements ofpredictable, predictable time, predictable, and predictable rules of the content criteria,and other reference of the foreseeable factors and predictable rules for exceptions.China’s "Contract Law" Section113also provides predictable rules, but onlythis one, seems too general and simple. Judicial practice in China, predictable rulesmainly apply to two types of property damage: First, actively damage. Including theinnocent party for breach of contract and breach of contract paid to a third partypayment, deposit or compensation; observant for the purpose of the contract hasalready been disbursed to the charges. Second, the negative prejudice: the observantparty from the contract should be given full use of the performance of this benefit,value-added profit, resale profit, operating profit and other possible benefits of theloss. At present, the administration of justice because of predictable rules for theunderstanding and application of different standards, resulting in the processing of theresults is not uniform. In this connection, the author made the following aspectsrelated proposals: if the difference in resolving the issue of alternatives, the rulesshould be clear only foreseeable alternative to resolve whether there should becompensation for the damage spread problem, and to resolve differences with theimpairment is reasonable rules problem; according to the development of China’s market economy and credit system, in judging the innocent party to pay liquidateddamages to others, suffered losses in resale profits whether compensation from thedefaulting party to be more appropriate based on objective criteria and contract, theparties have agreed liquidated damages under the circumstances, should fully respectthe principle of party autonomy, the defaulting party, after the payment of liquidateddamages for the damage caused by observant of other general rules no longer applypredictable, they can not require the defaulting party for breach of contract outside thescope of liability payments.