Cause Analysis And Legal Conception Of Default

The financial turmoil, provoked by the U.S. subprime mortgage crisis in2008has silently and rapidly swept through the entire international financial market. The speech given by Premier Wen Jiabao, when attending the opening ceremony of the Hannover Messe in Germany in April2012, indicated that, the current international financial crisis proceeded with challenges as well as opportunities to the global industrial development. Although the world economic recovery is still brimmed with difficulties and setbacks, it is the major mission of the global industry circle to overcome the financial crisis. In the context of the post-financial crisis, with the market still in constant fluctuations and commercial activities filled with uncertainties, for a time, the number of civil and commercial cases in which labor disputes and financial loan disputes account for the majority increased significantly.Based on the social reality, the paper introduced the theory of efficient breach in the process of analyzing how to cope with corporate defaults in the post-financial crisis.Through the perspective of efficient breach theory, the paper elaborated on the causes and remedies of defaults, and then, by combining China’s national conditions with the reasonable ideas of the efficient breach theory, the paper explored the ways of integrating the safety factors and efficiency factors in the transaction processes to realize the new economic boom.The paper has been divided into five chapters with the foreword, the body (composed with three chapters) and the conclusion.First of all, the concept of breach of contract was preliminarily defined along with the reveal of the large quantity of defaults taking place in the context fo the post-financial crisis through the method of evidence and sample survey.Secondly, the efficient breach theory was introduced to analyze the causes and the different patterns of defaults.Last but not least, in the third part of the body, through three levels---the enterprises, the judiciary and the legislation, the paper found its foothold by proposing legal conception on how to deal with defaults in the post-financial crisis and to promote economy integrating safety factors and efficiency factors.