The Legal Effect Of The Contract Termination

The system of the contract termination is an important system in contract law,where theinterests of the parties to the contract can be greatly affected．Meanwhile,the legal effect ofthe contract termination is the core part of the system of the contract termination.Thedissertation firstly analyze the basic content of the system of the effect of contract termination,and then discusses some contentious issues in the effect of contract termination．They’reretroactive effect of contract termination，liability in restitution,the nature and extent ofdamages,compensation for damagesetc.The dissertation can be divided into four parts.Chapter one outlines the system of contract termination．This chapter mainly discuss thedefinition，characteristics, purpose and value of the system of contract termination. Thediscussion above proves that contract termination is a unilateral act,and can only happen aftera contract becomes effective, upon satisfaction of the condition for termination of thecontract,legally prescribed or the parties agreed,the result of which is that upon thenotification of a party to the contract,the contract isn’t legally binding retroactively or fromthat point.The features of the system is that the application is limited to effectivecontracts;the termination happen upon the notification of a party to the contract; thecontract can be terminated retroactively．These characteristics differ contract termination fromvoid contracts and agreed termination of contract respectively.The purpose of the system is toencourage the trades, balance the interests of the parties to the contract,and retain the order．Chapter two presents the issue of retroactive effect of contract termination, which is thekey part of this paper．This part analyses the relative foreign legislation and theories，andreviews the counterparts in our country,which shows that the shortages of Contact Law. Thedissertation holds that contract termination has the retroactive effects, and this should beclearly stipulated in the Contact Law,where the protection for the third party should beadded．Chapter three analyzes the1iability in restitution after termination of contract．This partdiscusses the concept，nature and ranges of the1iability in restitution．After reviewingdifferent theories and opinions,it is considered that the forms of restitution after terminationof the contract is not only returning objects or properties,but also be refunding the money．Asthe property act is not recognized in Property Law in our country, restitution falls into the claims for the returning the belongings for the right of ownership.Chapter four discusses the termination of contract and the compensation for damages.This chapter mainly examines the relationship between the termination of contract and thecompensation for damages, and the nature and ranges of the compensation for damages.Through these analyzing, it can be put forward that the compensation for damages does notconflict with, but parallels the termination of contract,so the compensation for damages forbreach of contract will not be affected by the termination of original obligations,which meansthat under the circumstance of breach of contract，the regulation for compensation fordamages still apply.Consequently compensation for damages for breach of contract shouldinclude the compensation forinherent interest rather than the reliable interest, which alsoshould be prescribed in Contract Law.