The Application Of The Punitive Damages System In Real Estate Transaction Of China

Punitive damages system which from the common law system, in recent years,with the development of the world economic and liberalization of trades, the role ofpunitive damages system becomes more important in the civil law system, more andmore civil law countries also began the introduction of this kind of system.In1993, China formulated the Consumer Protection Law, and the Punitive DamagesSystem was first introduced in our law. With the in-depth development of China’smarket economy and the overall promotion of the national economy, the real estatemarket in our country is developing rapidly, however, dispute about whether real estatebelongs to the "Consumer Protection Law" or not, has been highly controversial intheorists. With the development of the real estate market, Disputes in the sale of realestate is gradually increasing. The original system of compensatory damages can’t curbthe violations when resolving such disputes. In2003, the Supreme Court promulgatedthe "Interpretation about the Real Estate Contract Dispute on the Trial Case", whichintroduce Punitive Damages System into the procession about the real estate contractdispute. However, the time of application of punitive damages system is too short in ourcountry, and also, The legislation on punitive damages system is not closely linked,even conflicting with each other, so that make the courts encountered many difficultiesand embarrassment when they solve real estate disputes by this system.In view of all above, this paper discusses the following five parts.The first part is the general theory of punitive damages system, which introducesthe concept and history of punitive damages system, and summarized the basicfunctions of the punitive damages system, then investigating the relationship betweenthe punitive damages and compensatory damages.The second part elaborates the case of punitive damages system applicable in thesale of real estate in China, as well as specific applicable conditionsThe third part discusses the problems and shortcomings of punitive damagessystem when applicable to the sale of real estate disputes in China.The fourth part is the establishment and development of the punitive damagessystem in common law countries, as well as the reference of other civil law countriesand regions. And then get inspirations to the establishment of the punitive damagesSystem of China. For the reality in China and the application of punitive damages system at othercountries and regions, the fifth part gives us suggestions for improvement for theapplication of the punitive damages system in China.