Judicial Rules Applicable Predictable

In real life, a party failing to fulfill its contractual obligations or fulfilling contractual obligations not conforming to the agreement have always occurred. In the use of Article113of the Contract Law to compensate for the other party, controversies often occur for the limitation of loss compensation.The latter part of Article113of the Contract Law "losses should not exceed the possible losses due to breach of contract that are foreseen or should have foreseen by the party who breach contracts", this doctrine is known as "predictable rules limit". To some extend, the establishment of this rule changes the status quo that consequential losses are difficult to compensate in trial practice. Whether from semantics or practice, this rule likes the two sides of a coin, embodying flexibility and giving too much uncertainty.In the trial practice, the reasoning of Article113of Contract Law is not clear enough in the judgment; the identification of losses in the preparation phase is not unified, that is, how to deal with reliance interest and evidence; the standard of expected profit loss is indistinct, the reality of profit is not accurately grasped; the loss caused by observant party contracting with a third party cannot be distinguished. Through studies of existed cases and theories, I hope I can get more determined applicable rules which are helpful for trial practice.