Study On The Problems Of Legal Recession Procedure And Effects Of Contracts

PRC Contract Law doesn’t provide detailed regulations on the procedure and effect of exercising the recession right. It only provides general principals. However, the general principals could not meet the needs of the daily-changed practice. Different courts have different rulings on the similar case related to the contract recession which will cause the unsteadiness and unpredictability of Law. There are various theories and law interpretations on the condition, subject, way and time limit of exercising the recession right of procedure problems and the retroactive effects, compensation and its scope of recession effects. This thesis begins with the current regulations of exercising procedures and effects and makes analysis of various theories, laws of different countries based on the actual situation of China from a practical perspective. The thesis focuses on mainly two parts, one is the procedure on exercising the recession right and the other is the legal effect of exercising the recession right. Regarding the procedure part, the main issues are the condition, subject, way and period. Regarding the legal effect of the recession right, the main issues are the retroactive effects, the nature of restoration, the legal basis of the recession right and the calculation limit of the compensation.Chapter One: Issue Raised. As the first chapter of the thesis, the issue was raised from a case which reminds me to have some thoughts on the regulations of the contract recession. At the meantime, this chapter aims to clarify the meaning of the contract recession system, a general introduction of the contract recession system and the research scope of this thesis.Chapter Two: Condition to Exercise the Recession Right. This chapter begins with the definition of the recession right and mainly focuses on the condition of the exercising of the recession right. This chapter aims to give analysis on the current regulations of PRC contract law.Chapter Three: The Procedure of Exercising Recession Right. It is important to clarify the procedure to exercise the recession right for the general practice. The content of this chapter is mainly consists of all the elements related to the procedures of the contract recession. This chapter begins with the analysis of the current regulations of PRC contract law and further with the comparison of various theories and laws of other countries in order to figure out which theory matches the actual situation of China most.Chapter Four: “The Retroactive Effect and Compensation of Contract Recession”. As one of the fundamental issues of the legal effect, the issue has an important effect of the other content. This chapter provides a general introduction of the retroactive effect and clarifies the related definitions. Also, this chapter provides comments on the main theories regarding the retroactive effect. But last but not least, it focuses on the nature and scope of the restoration duty which is closely connected with the retroactive effect. This chapter also discusses the relationship between the contract recession and compensation. Further, it clarifies the legal basis and scope of the compensation. Lastly, it describes the calculation limits of the compensation.