Practical Research On Rescission Right Of Contract In China

Pacta sunt servanda (Latin for "agreements must be kept") is a basic principle of the contract law. However, along with the development of modern economic society, the market environment becomes more and more complexity. The implementation of contract may become not possible or even not necessary, when reasons occur against the intention of the parties. At this time, if the parties to demand the law still contract, certainly will against the parties’initial will, which will be conspicuously unfair to both parties. The rescission right of contract, as a crucial part of the contract system, sets the possibility for the parties to get rid of the binding contract. However, the stipulation regarding to rescission right in contract law is too abstract, not explicit enough in terms of legislative technique. The law is unclear when it comes to the issues regarding to the exertion conditions, legal procedures, and legal consequence. Therefore, in legal practice, courts have different views over the rescission right, which inevitably ignites controversy disputes.The paper selected the rescission right of contract as the research object, mainly focus on the angle of practice. The paper used various research methods, such as historical research, comparative study, literature research, case studies and other comprehensive research methods, in perspective of rescind the law applicable to contractual problems. Based on the legal theory and full analysis of the related legal requirements, the author comprehensive analyzed the exercise of rescission right, time limit of the contract, and the legal consequence. After systematic combs of the related rules, the author pointed out the flaws of the contract law in terms of the rescission right. Further, the author analyzed the causes for parties to rescind the rights and the corresponding methods. Moreover, the author discussed and put forward personal opinions in several disputable contracts, involving inoperative contract, unilateral contract, pre-contract, continuous contract, and sales contract with retained ownership.