Three Characteristics Of Punitive Damage In American Contract Law

Through a comprehensive analysis of the application of punitive damages in the American Contract Law, this paper has concluded three of its outstanding characteristics:Wide range of application, Subjective requirement of the occurrence of harmful consequences and Flexible maximum limit in the amount of punitive damages. This paper is divided into three chapters, each focusing on only one of the features. Chapter I gives a general statement of its wide range of application, which shall guarantee the clients’exercise of their rights, procure the elimination of social inequality between parties involved in the Public Contract and emphasizes the importance of honesty and the writer comes up with corresponding suggestions on the applicable scope of punitive damages in China; Chapter Ⅱ discusses the subjective requirement of the occurrence of harmful consequences. The writer concludes the subjective requirement shall help to avoid obscure conditions of punitive damages and facilitate to play its role and proposes to restructure the applicable conditions of punitive damages in Chinese Contract Law; Chapter Ⅲ deals with the writer’s experience from the flexible maximum limit in the amount of punitive damages that it will act as preventive measures to avoid excessive and slight penalties and has proved to be more persuasive as well as the writer’s advice to adjust the applicable amount of punitive damages in China. Summing up the above mentioned three experiences, this paper comprehensively combines theory with the domestic current situation and finally puts forward her own ideas aiming at better application of punitive damages in Chinese Contract Law.