The Doctrine Choosing And System Constructing On The Legal Effect Of Contract Dissolution

How should be the legal effect of contract dissolution, in practice, there are all sorts ofstrange results that emerge in an endless stream, in theory,doctrine disputes rise one afteranother, especially the doctrines called "Direct Effect" and "Liquidation"(also known as"Liquidation Relations") are the main representatives. Look at the enactment of legislation, agrowing number of countries and regions in the world tend to adopt "Liquidation Relations".The German Civil Code says from "Direct Effect" into "Liquidation Relations" after theobligation law reform and establishes a set of system of liquidation. But the provisions forthis of China’s "Contract Law" is simple and rough, and still seems inclined to stick to the“Direct effect” leading to problems. On the issue of the effect of contract dissolution, Chinashould choose "Liquidation Relations ", and on the theoretical basis mainly learn from thereform results of the new German law of obligation to modify and improve the relevant normsof China’s "Contract Law", and build our our country ’s system of liquidation.The paper isdivided into four parts.The first part, the processing and disputes in practice. Does the terminated contract hasthe retroactive effect? After the dissolution of contract, the request of liquidated damagesshould be supported? whether the acquirable interest should be compensated? These threeaspects are the manifestation of main controversy on the question in current practice.Throughenumerating the controversial performances, it is not difficult to see that these disputes areessentially due to the differences of the recognition and selection of the doctrines on the issueof the effect of Contract Dissolution.The second part,the comparison of the doctrines and the legislative situations. This part,through introducing and analyzing of main doctrines and national legislations about the effectof contract dissolution,is in order to grasp the current process of legislation and theory on thisissue. Based on the overall evaluation of the related theory and general legislation, the paperargues that "Direct Effect" and "Liquidation Relations" give a relatively large effect onlegislation and judicature, and they can compete with each other.The third part, the comparison and selection between "Direct Effect" and "LiquidationRelations". This section gives the two doctrines a depth analysis and detailed comparisonthrough the three aspects of theoretical construct, the effect of practice and the reality ofapplication, finally draws the conclusion: whether from the perfection of theoretical logic or the equitability of actual effect, or from the view of its compatibility with he current legalsystem and the developing trend,our country should choose and adopt "LiquidationRelations".The fourth part, the construction of the system of liquidation on China’s " contract law ".This part, taking "Liquidation Relations" as the theoretical basis and "German National debtLaw Modernization"as the main referenced objects, put forward the views andrecommendations to modify and improve China’s "Contract Law" specification,and to buildour our country ’s system of liquidation, so as to deal with the problem of legal effect ofcontract dissolution better.