Theory Analysis On Mr. Lin Xiangyang Suing HONGSHI Company Case

The focal point of the dispute between Mr. Lin Xiangyang and HONGSHI Real Estate Development Co., Ltd is the identification in the debtor-creditor relationship concerning contract of sales on commodity apartment and relative filing and registration issues. Mr. Lin Xiangyang previously pressed charges against HONGSHI Real Estate Development Co., Ltd in the name of disputes both on commodity apartment sales contract and loan contract. The case has been through trial for nearly four years with four different copies of judgment by more than ten judges from Intermediate People’s Court and the Member of Judicial Committee before it finally got a justice judgment. By this token, the judgment verdict could be totally different made by different judges based on the same fact even in the same court. The reason contributes to different contract dispute interpretations by different judges. Therefore, the study on contract interpretation has a significant realistic meaning to contract disputes settlement.In the field of justice practice, the legal issues are usually to be very comprehensive which need to be studied by combined theories in interdisciplinary fields such as phycology, economics, sociology etc. This article starts with a specific case with contract disputes and carries out the research of contract interpretation combined with the aspects of psychological cognition prejudice and restraining to contract concluding by transaction cost. First of all, whether the contract signatory---both parties or the contract interpreter---the judge, whether the cause of contract dispute or the identification on the fact of the case by the judge, could not work without the psychological cognition on contract clauses, while prejudice does irrevocably arise in the proceeding of human cognition. Secondly, the transaction cost has a direct impact on the benefits of a party involved. The maximizing of benefits is always the party’s pursuing goal which has greatly restricted the quality of the contract and thus hides the foreshadowing for contract disputes. As for the justice adjudication, trial quality is also affected by the cost of justice.The main concerns in this article are as follows: how the judge’s prejudice on cognition should be avoided to influence the judgment in the practice of justice; through the study on state of development of the theory of contract interpretation in Continental Legal System, we acknowledge that meaningism and expressionism are harmonious and applicable in the contract interpretation of justice practice; through the discussion on state of development of contract interpretation system in China, we could form some theoretical viewpoint on contract interpretation system in our country; through the evaluation and analysis of a specific case in the article, we figure out what kind of disadvantages may exist in the practice of justice and legislation in our country and give advice on how to improve. This article is aiming to reduce cases which may have different judgment during trial to a certain extent and to safeguard judicial justice.