The Compensation For Mental Damages In Breach Of Contract

China’s traditional civil law theory has always adhered to the breach of contractand binary relief system. The traditional theory insists that Liability for breach ofcontract is property responsibility and the mental damage compensation should not beincluded in the liability for breach of contract, so the mental damage compensation islimited in the field of tort liability and the judicial practice has been guided by thisprinciple. This dissertation queries to this view and argues that there is theoretical andpractical basis of compensation for moral damage in breach of contract. In order tobetter protect the legitimate rights and interests of the parties concerned, we shouldbuilt up the mental damage compensation in breach of contract system based on theexisting law.All around the world, both of the common law and civil law, the major countriesare in a extent affirmed the mental damage compensation in breach of contract.Through the comparison research, this article confirms that the compensation for moraldamage in breach of contract accords with modern civil law theory value demand; thenbased on the theoretical basis and practical need to analyze the legitimacy of the mentaldamage compensation of breach of contract; finally the construction of the system ofthe mental damage compensation of breach of contract in our country will be discussed.This dissertation consists of five parts besides of the preface and epilogue.The first part is the summary of the mental damage compensation of breach ofcontract. The article begins with the connotation of the mental damage, then analyzesand determines the connotation and characteristics of the mental damage compensationin breach of contract.The second part is analysis of the present condition of the mental damagecompensation in breach of contract in our country. The article clears up the presentsituation of the mental damage compensation of breach of contract from the theoreticalresearch and judicial practice.The third part is the comparison analysis about the mental damage compensationof breach of contract. From investigating the attitude about the mental damagecompensation of breach of contract in the United States, Britain, France, Germany,Taiwan and international legal documents, we find that the major countries in commonlaw and civil law in the form of legislation and case, in a certain extent, have affirmed the mental damage compensation of breach of contract, which will provide reference inthe construction of mental damage compensation of breach of contract system.The forth part is the analysis of the legitimacy to carry on of the mental damagecompensation of breach of contract. The mental damage compensation of breach ofcontract accords with the essence of spiritual damage compensation system, and at thesame time, the principle of contract law completely compensation needs, and can makeup the limitation of liability co-opetition. The practice needs of the mental damagecompensation in breach of contract, is that there has been a lot of affirmative cases, atthe same time as the practice could not be in accordance with the applicable law in thejudicial, leading to chaos, the victim’s legitimate rights and interests can not get reliefand other problems.The fifth part will elaborated on the construction of the mental damagecompensation of breach of contract system. The article will from the basic principles,components, and reasonable limit three aspects of building our mental damagecompensation of breach of contract system. Our country should adopt the generallyprohibits and exception allowed mode; the components should include the defaultbehavior, mental damage facts, causal relationship and the defaulting party’s fault. Atthe same time we should restrict the mental damage compensation of in breach ofcontract from the types of contracts, predictability, rules of pure commercial contractrestriction and other restrictions.This paper mainly has two innovations; one is the analysis of the legitimacy of themental damage compensation in breach of contract. In the theory basis, the paper theresponsibility co-opetition limitations, and in practice need, the article cited a largenumber of real cases, with true judgment as backing, reflects the urgency ofestablishing the system of mental damage compensation in breach of contract. Anotherinnovation is to put forward the type of limit of mental damage compensation in breachof contract, and clear the four type of contracts.