Practical Analysis Of The System Of Discharge Of Contract

With the ever closer economic exchanges and more and more frequent transactions in the society, the Contract Law is of great importance in safeguarding the market economy. A mature market economy is characterized, to a large extent, by the prompt and complete performance of contract, the timely and fair settlement of the disputes derived from contract. The system of discharge of contract plays a major role in promptly and impartially solving the disputes emerged from contracts.Such issues in the system of discharge of contract are significantly controversial in the judicial practice as whether notifying is the necessary procedure in discharge of contract, whether liquidated damages can co-exist with discharge of contract and the range of compensations upon the discharge of a contract. Proceeding from the basic theory of discharge of contract and the pertinent articles in the Contract Law, the thesis is devoted to analyzing and illustrating, with introduction of judicial precedents in every chapters, the problems occurred in judicial practice concerning the notification of and the legal consequences upon discharge of contract.The first chapter, starting from Article 96 in the Contract Law, states the way and the effect of notification of discharge of contract and further analyzes the pros and cons of the way to discharge a contract through direct litigation without previous notification. The second chapter, starting from Article 97 in the Contract Law, discusses the effect and the legal consequences of discharge of contract, and along with the characters of the liquidated damages, presents an assertion whether the liquidated damages can be claimed upon the discharge of a contract in judicial practice. The third chapter, based on the compensations for the loss--one of the legal consequences explicitly stipulated in the Contract Law, defines the characters of the compensations for the loss upon the discharge of a contract by analyzing whether the compensation for the loss upon discharge of contract is a form of the liability for breach of contract or a form of other civil liability, and continually deliberates whether the prospect interests can be backed.Illustrated with specific cases, the thesis studies three widely disputed issues emerged from judicial practice from both theoretical and practical scope, and aims to achieve some breakthroughs.