Research On Pure Economic Loss Caused By Negligence

Pure Economic loss is a financial loss which is not causally consequent uponphysical injury to the victim’s own body or property; therefore it shows the expectedeconomic interests of the victim. In the non-contractual area, exclusion rule iscommonly used as a worry of unlimited loss and liability. The invasion of pureeconomic loss cannot constitute the elements of tort in most circumstances. Besidesthis, reasons of floodgates, human interest class, general risk of life and the boundaryof contract and torts regulation are also commonly known as political concern inrefusing to give compensation on economic loss. The thesis tries to deepen therealization of pure economic loss in a way of classification and investigation in thereasons of exclusion rule. I will also look into the exceptions of exclusion rule in acomparison method and find a way to protect pure economic loss. Finally, anobservation of Chinese legislation and judicial practice helps in finding a way toconstruct the protection system of pure economic loss.Except for the introduction and conclusion, the article contains five sections.Section1the types of pure economic lossIn this section, an analysis and investigation of conception, characteristics of pureeconomic loss will be contained. Then a way of classification established by MauroBussani in his Pure Economic Loss in Europe will be referred to deepen theinvestigation. On that basis, an exclusion rule has been abstracted as a basic rule in the compensation of pure economic loss.Section2the reasons of exclusion ruleIn this section, reasons of exclusion rule will be described technologically andpolitically. In the technology way, the invasion of pure economic loss cannot meetthe elements of tort. In the political way, the theories of floodgate, interestclassification, common risk of life and the boundary of contract and torts seems to bepowerful reasons to prevent pure economic loss from compensation. However, thereare irrational aspects in the political reasons and exceptions of exclusion rule havebeen established.Section3a typology research on the compensation of pure economic lossIn this section, compensation on pure economic loss will be introduced in atypology way. On the basis of that, a comparison method will be used to further theinvestigation of compensation in Germany, France and England (etc).Section4the way of compensation on pure economic lossIn this section, a conclusion will be made on the base of frontal section to analyzethe way of compensation on pure economic loss in typical countries.Section5the way of compensation on pure economic loss in ChinaIn this section, some cases of pure economic loss being compensated will bequoted to start analyzing the pure economic interest in China. Then the legislation oncontact and torts will be researched to find a balance between the protection of pureeconomic loss and the freedom of action. Torts should be used as a main method inprotecting pure economic loss.