On Application Of Punitive Damages In Contract Law In China

The punitive compensation system of Anglo American law system is amature system of compensation. The punitive damages of contemporary wasfirst legislated in Britain and well developed in America which has been amature penalty system as a supplement in compensatory punishment. Thepunitive damages plays an important role in punishing the offenders,protecting the victims, deterring the criminals and maintaining social order.The scope of application of the punitive damages has been extended fromtorts law to the contract law. The author found that there is a rising trend inthe actual trial in the contract dispute cases in the civil and commercial cases,among which the performance of the contract dispute occupies a largeproportion.The main reason is that the liability for breach of contract incompensatory damages is too weak,which would lead to the low cost ofdefault, the insufficiency in the breach the deterrent force.So the author try toapply the punitive compensation system in our country’s contract law field.