On The Calculation Of Damages For Breach Of Contract

Though the calculation of default damage compensation is not a big problem, withthe compensation system of extensive and profound, it still needs to be further discussed.First of all, this paper have a comprehensive analysis on the premise of the calculation,the boundary of the calculation, calculation methods and calculation standards, so as tobuild up the basic framework of breaching of contract damages. Then, base on theexisting research on the formula and the using of breach of contract damages to fullyexplain, we can provide scientific basis for the precise on calculation of damages.The "damage" of default damage compensation includes “Differences theory”,“Organizations theory” and “Facts theory”, while, which kind of these ideas should beadopted is more reflections of a theoretical study on the significance. When making thecalculation of breach of contract damages, don’t have to struggle with this, it needs to belocated from practices. Usually cases, damage is not a single element on the law ofcontract, the same behavior may cause a number of “no interest”, such as propertydamage and damage to property, the interest of the trust and expectation. Even for aspecific subject matter of a single damage, we can also carry on the furtherdecomposition basing on the calculation, find out the “nucleus”,“cytoplasm” and “cellmembrane”. In fact, the analysis could under the help of Japanese scholars’“damageprojects”, through making sure the value of property and resell interests in respectively,we can solve the problem of damage compensation. Thus, complicated and tedious“damage” can be presented in a intuitive way. Afterwards, we can get the basis to selectthe calculation methods of default damage compensation.Relative to “damage”,“compensation” is another important factor. For“compensation”, the most important problem is the origins of it, namely how tocompensate the “compensation”? What are the origins of damages, academic circlesalso disputed, the mainstream view is that damages should be compensated, whichusually do not allow the punitive compensation. Using economic analysis method, cannot only better calculating various kinds of “cost”, but also to maximize theimplementation compensation “benefit”.After thoroughly understanding the “damage” and the “compensation”, the authoruse analysis tools of predictability, causal relations, negligence offset regulation,reducing the loss rule and profit-loss balance rule on the calculation of damages so as todefine the boundary clearly and find out the calculation rules. Among the above analysis tools, especially in the most complex, predictability and causality, therefore, the authorspecially analyses the relations between them.Among all kinds of standards of the calculation, the time standard has the mostquestions. By determining the calculation standard of breach of contract damages(mainly refers to the price standard, the time standard and the place standard), canprovide a criterion for computing. We can maximize reducing subjective factors in theprocess of determining the amount of damages for breach of contract.Calculation method and calculation formula appear like the paddles of contractdamages’ calculation. The main calculation methods include “balance and repair costs”,“expectation interest compensation and market compensation for damage”,“theabstraction and the specific calculation method”,“the abstraction and the specificcalculation method” has a better match with the calculation’s premise-damage andcompensation. Before making a calculation formula, we should deal with the calculationformula’s basic factors so as to get a clear position. After that, we can analysis theapplication of the formula of general formula and special situation respectivelydepending on different default behavior. At last, we can discuss the priority formula ofwhich we have made. Only by this, can we get some clear rules when making the choiceof formula.