On Altruism Contract With Comments On Article64of The Contract Law

This article investigated the validity of the contract in question is a special field,whether contract be effective for the third person other than the parties, whetherContract Law endue binding to the contract. Generally, Parties to the transactioncontract for their own, contracts are only effective between the parties. When twotransactions reach an agreement aimed at achieving the interests of the third person,that will touch the red line on contract law: the Principle of Contract Relativity.However, this principle is so ancient that hindered the development of specific fieldin the modern market economy, among which most typical example is insuranceindustry. Therefore, Contract Law should be responding to such economictransactions, permitting break through principle of contract relativity in specific field,promoting the development of related industries. Purpose of formulating Article64on Contract Law is to regulate such economic transactions,however, since statementsof Article64are indefinite, scholars have a great disagreement on interpretation of theclause. How to locate Article64always plagued theorists and practitioners ofContract Law. The purposes of this article are studying altruistic contract system,explanating Article64, suggesting for building altruistic contract system on ContractLaw.This article analysed the basic theory, identification and validity, Chineselegislation and judicial practice of altruistic contract. The whole article is based onstudying and reflecting the principle of contract relativity, and each chapter expandsby using logic thinking of "proposed the question, analysis question, solve theproblem". Specifically, the first part defines the concept of altruistic contract bycomparing altruistic contract system to other systems involve the third person,clarifies the relationships between the parties and the third person in altruistic contract,and investigates causal relationship theory in altruistic contract.Then this articlestudies how courts identify altruistic contract and determine its validity in the secondpart, by learning from American contract law scholar’s research findings in motivation of parties and practice of distinguish between types of beneficiaries in theU.S. trial practice, abstracting several factors of finding altruistic contract byinduction. The third part starts from interpreting Article64of Contract Law by usinga variety of methods of law interpretation, then studying two paths of designingaltruistic contract system by combining with judicial practice and judicialinterpretation.Finally, the author put forward the following five aspects of ideas:(1)Abstractlysummarizing five factors of finding altruistic contract from two angles, motivation ofcreditor and affects on third person by debtor’s payment.(2)When the debtor defaultsto the third person, creditor should claim against debtor to continue to fulfill firstly,then claim against debtor to damages if debtor constitute anticipatory breach. Whichcreditor losses are expectation interest in altruistic settlement of contract andrestitution interest in altruistic donation of contract if the compensation relationshipbelong to bilateral contract.(3)When the breach of debtor constitutes Article94ofContract Law, creditor can exercise the legal right of cancellation based on thefollowing four factors: the nature of debtor’s default, the basis and nature of the legalright of cancellation, the benefits of the third person, and the limits of breaking theprinciple of contract relativity.(4)When compensation relations are untenable, invalidor revoked, the debtor can claim to the third person the return of unjust enrichmentclaims if the debtor fulfilled. In addition, the debtor can exercise to the creditor thecompensation claim right if creditor is at fault.(5)Putting forward two paths ofdesigning altruistic contract system and a proposal of modifying Article8of ContractLaw according to the relationship between altruistic contract and the principle ofcontract relativity.