Discussion On Contract Interests On Compensation Of Damages For Breach Of Contract

The general view of civil and commercial thinks that compensation of damagesfor breach of contract means that the breaching party shall compensate the loss of thenon-breaching party if he fails to perform or renders non-performing performanceaccording to the contract law or the provisions of the contract. As the generalprovision of liability for breach of contract, Article110of the General Principles ofthe Civil Law and Article107of Contract Law have stipulated compensation ofdamages for breach of contract.However, the civil law and common law system have different means and typeswith regard to contract interest, our country’s legislation has no explicit stipulationregarding this, which leads to many legal problems. This article will discuss theseproblems from multiple perspectives in order to define contract interest, clarify therelationship between many kinds of contract interest by means of comparing andestablish the contract interest system in accordance with the existing laws andregulations. First of all, the Introduction of the paper would figure out the definitions ofcompensation of damages for breach of contract and the contract interest and proposethe main problems that exist both on legislations and in theories.Chapter one contains three parts and mainly aims to define the relative types ofcontract interests by classifying different interpretation of contract interests both onlegislations and in theories, and by carrying out comparison study on types of contractinterests in the civil law system and in the Anglo-American legal system, and thenfigure out the difference between these two law systems with regarding to contractinterest and make clear the specificity of regulations relating to contract interest in ourcountry.Chapter two focuses on comparison study on types of theories about contractinterests in the civil law system and in the Anglo-American legal system, and finallyfigure out three different kinds of contract interests, including “differ in contents butsame in stipulations”,“differ in stipulations but same in contents” and “differ both incontents and stipulations”Chapter three mainly carry out systematic study on existing contract interest inpresent laws and regulations.In this chapter, in section1we first discuss about thecauses and solutions on the confusion phenomenon about the conception of ChineseCivil Law, and point out the adverse effect of this phenomenon to legislative, judicialand the law field.In section2we propose the correct method of defining andinterpreting contract interest, finally draw the conclusion that the system of contractinterest in the Contract Law is basically composed of the restitution interest, thereliance interest, the expect interest and the inherent benefit.