A Research On The Case Of The Property Right Transfer Of Jilin Jihe Hotel

The revolution in the state-owned enterprise happened in the society today.Therevolution could improve the economic development of the country.In market economy, there are various kinds of trade behaviors and transactionsubjects. As one of subjects participating in market contract transaction, thegovernment, because of its dual identity, is very likely to cause breach of contractbehavior and harm opposite party trust interest. As core value of honesty andcredibility principle, trust is premise and foundation of both sides of market fulfillingcontract. From the aspect of government administrating the society, the phenomenonof harming the trust interest is so pervasive.The author presents the topic of the thesis, that is, the case of transference ofproperty rights of Jihe hotel in Baicheng city. In this case, in order to make its hotelmarketization, the institution administration bureau of Baicheng city signed thecontract of stock transfer. Meanwhile, it also carried out a serial of lawful behaviorsto propel the stock transfer. However, in the process of execution of contract, thegovernment refused to fulfilling the term. So dispute is caused.Then the author deeply analyzes the validity of the contractual behaviorconducted by both parties from the angle of legal principle. This is directly relates tothe existence of the reliance interest loss if the government does not perform thecontract as one party. According to "contract law", the author examines somesituations in which the contract is not in conformity with the law, such as theunfitness of the two parties, the ineffectiveness of the purpose of signing a contract,the unlawfulness of contract object, being not consistent with the national policy andthe unlawfulness of conduct in the process of the drafting and signing a contract. Inthese cases, the contract is invalid. At last, the author explores government’s behaviorof refusing to fulfill the contract while one party has carried out the major contractualobligations. With what have been analyzed above, the author confirms that thegovernment’s disobeyed of the principle of good faith in the contract has resulted inreliance interest loss of the opposite party. Also,the author give the way how to calculate the damage interests cause bybreaking a contract in the case.The contractor who break the contract should pay thewhole damage,including the added interests and the management profit.