| As an effective mean of remedies for breach of contract, damage compensation plays a vital role in both domestic and international trade, and it is included in domestic laws. When a party fails to perform the contract, he has to compensate for the loss of the non-defaulting party by undertaking the liability for breach. Although the defaulting party is required to be liable for the loss, it’s not punitive but to make up for the loss. Since the breach causes both actual loss and loss of expectation interests which could be acquired by the non-defaulting party if the contract should have been performed properly, so the defaulting party should be responsible for the loss of expectation interests. United Nations Convention on Contracts for the International Sale of Goods (CISG) is an important international law that regulates the international trade behavior. With states joining the treaty continuously, more and more international trade contracts are subjected to CISG. And CISG is applied to solve the disputes between the parties, mostly breach disputes. Damages are stipulated in Chapter V Section II (Article 74-77) of CISG. The compensation system for expectation interests is ordained generally in Article 74, without defining the compensation scope clearly, which results in the different loss identifications in practice. And this has a negative effect on the authority and unity of CISG.Begin with a CISG case, the thesis talks about the problems arising from the compensation for expectation interests:whether to make up for the loss of expectation interests? If the answer is yes, how to confirm the scope? The Main Body includes the following five parts:Part I’The general theory of expectation interest’, including the connotation and characteristics of expectation interests and its theoretical basis. The main point is that expectation interests are characterized in futurity, foresee ability, and relative certainty. According to the principles of Economics, the purpose of liquidated damages regime, principle of full compensation, the party in breach is liable for the loss of expectation interests.Part Ⅱ’Damage compensation for expectation interests of CISG Article 74’, including the content of CISG Article 74, predictability and other requirements for expectation interests. The main points are that the content of CISG Article 74 is too vague, and more specific and directed rules for the loss of expectation interests are needed.Part Ⅲ’Comparative Analysis of CISG and other legislation for the loss of expectation interests’, including Principles of International Commercial Contracts(PICC),domestic laws of some typical states of two legal systems and China. The main points are that PICC and domestic laws of typical states are more meticulous than that of CISG about the compensation system for the loss of expectation interests.Part IV’The necessity to perfect the compensation system for the loss of expectation interests’, including the jurisprudence value and practical demand. The main points are that to perfect the system is corresponded with the requirements of fairness and efficiency and is helpful to maintain the order and security in the transaction. And it satisfies the demand of practice.Part Ⅴ’Amendments to the compensation system for the loss of expectation interests’, including the suggestions to explicit the types of the loss of expectation interests and include the non-property loss of expectation interests into the compensation scope and the enlightenment to perfect our compensation system for the loss of expectation interests. The main point is that the types of the loss of expectation interests and the non-property loss should be covered into the compensation scope. |
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