On The Judicial Application Of Contract Fraud

To some extent, fraud by using contract is particular in criminal law. That is why it isseparated in the current criminal law system. In the beginning of its establishment, thepurpose of contract fraud is protecting parties’ right from being violated, meanwhile itmaintenance the order of contract management and market economy. However, alone with thecontinuous development of market economy and the amount of contracts shows the trend ofgradually increased, the approaches of contract fraud is becoming various as well. Therefore,if contract fraud crime is applicable too broadly, it will inevitably lead to those acts whichshould not be adjusted by the criminal law be included in the adjustment range, therebyimpeding the self-balance system of market economy. Meanwhile, the objective behaviorcontract that fraud perpetrators implemented is similar with objective behavior of contractfraud since they are both conceal or fabricate facts. In the past, scholars distinguish them onlyfrom subjective intent “purpose of illegal possession”, which may lead to identificationinaccurate.Thus, contract fraud, which included in the field of economic crime, should be limited.From the perspective of norms, the requirements of “the modest and restrained principle”,the angle of criminal policy, the principles of hermeneutics victim. Based on theoreticalconsiderations above, author believes that identification of contract fraud should be concerned.Specifically, the scope, form and “purpose of illegal possession” shall be limited, theapplication of speculation ought to be restricted in criminal law as well. Moreover, since thedifficulty to distinguish “contract fraud” and “contractual fraud”, proper procedures shouldbe set to achieve the reduction applicable of contract fraud from substantial and proceduralaspect.