Study On The Legal System Of Fundamental Breach

With the trade among countries is increasingly close, the international sale ofgoods has become one of the driving force for global economic development.Business cannot do without the contract, a perfect contract can make the two partiesof the contract successfully complete transactions and solve the problems in theprocess of implementing the contract. But sometimes the disputes can hardly beavoided, using legal means to resolve disputes become the preferred method ofmany parties.In the process of legislation, China’s "contract law" seriously studied thecontinental law system and Anglo American law system in the breach of contractrescission, but because of the national conditions and the different history, theiropinions are not completely absorbed. According to our national conditions, fromthe view of the consequences of breach of contract, breach of contract rescissionsystem established. This is reflected in the "contract law" article ninety-fourth,which is promulgated in1999, the law clearly stipulates the basic situation when theparties may terminate the contract.Contract for the international sale of goods usually involves the transport,insurance, warehousing and many other links, the market is always in constant change,because of various reasons，emergencies may not be timely and effectively discussed,so the final transaction results may not be consistent with the results that the twoparties agreed at the conclusion of the contract. There are a lot of contracts does notmatch the situation, but some of them are not fundamental risks to the contractcompletion, if a fundamental breach of contract is determined by these problems, andthe contract is easily relieved, there will be concerns between both parties of thetransaction, it also will have a negative impact on the development of internationaltrade. Successful international trade cannot do without the protection of the law. With the increase of similar cases, we put more and more attention on the interests of theparties while the contracts for the international sale of goods are heard, and safeguardthe legitimate rights and interests of the parties is combined with the smoothperformance of the contract, a good trading environment is created. But what wecannot ignore is, our current legal provisions for the fundamental breach of contract isnot clear, this also lead to the abuse of discretion in the trial by some judges.