Exercise Of The Legal Right To Terminate And Its Influence On The Iability For Breach Of Contract

As a way of termination of the contract rights and obligations, Cancellation of contract gives the parties in the contract a remedy when the performance of contract disordered. When the contract has a breach, the non breaching party held the party’s liability for breach of contract, which is a kind of effective and feasible relief way. Those two relief ways have similarities in system design, but cancellation of contract and the liability for breach of contract are different in judicial practice.Combined with the basic content of cancellation system and related cases, the author will take the right of non breaching party as the breakthrough point to discuss the right of cancellation and its influence on the liability for breach of contract, in order to have a better understanding and to improve the two systems.On the content structure, the first part is based on the legal right of the cancellation and the author takes the exercise of statutory right of cancellation as the main line. The main contents include the subject, the methods and the objection of cancellation right. In respect of the existing law, the author gives some reflections on the doctrinal disputes. The second part is based on the legal effect of the cancellation right and the author discusses the effect of the default damage compensation and the liquidated damages, which gives the non breaching party some choices.The research methods mainly include the theory of legal interpretation, comparative research, cases analysis method. By comparing the cancellation mode of the continental law system and Anglo-American law system, the author gives some explanations about the cancellation mode of our contract law. By choosing typical cases in the judicial practice, the author diseusses the cancellation right and its influence to the breach of contract damages, liquidated damages. After constantly searching the data and analysis of reflection, the author has a relatively clear understanding of the above problems, and puts forward his opinion on specific issues. In respect of existing legislation and theory, the author shares some thoughts about the above problems to resort to everybody. After continuous combing, the author draws the following conclusions:(1)The subject of contract cancellation right is limited to the non breaching party, the breaching party is not the right subject. Besides, the Court, arbitration institution is not a legal right subject.(2)The method of the exercise of the legal right to terminate includes lawsuit and non-litigation way, inform is necessary to these two methods.(3)The objection of cancellation right itself, the objection period may be agreed by the parties themselves, if not,thcancellation is only about the e objection period is3months.(4) When the contract is cancelled, the non breaching party can require the Reliance interest compensation.(5) When the contract is cancelled, the non breathing party can required the liquidated damages.