The Research On The Discount Of The Penalties For Breach Of A Contract

In this paper, I exploit the penalties for breach of contract. Extravagant penalties for breach of contract makes people deeply feel that the risk of the penalties for breach of contract is high. The start-up of the discount of the penalties for breach of contract is difficult. Different result may appear in the discount of the penalties for breach of contract for similar cases. To address these problems, it is a necessary to exploit the discount of the penalties for breach of contract. In this paper, several methodologies such as historical analysis, value analysis, empirical analysis, comparison analysis and quantitative analysis are used to analyze the issues in the discount of the penalties for breach of contract from the aspect of the theory and the practice from the following perspectives:The first part is the overview of the discount of the penalties for breach of contract. The institution has a long history, however, it is not a confirmed by law in our country until 1980 s. Undoubtedly, the foundations of the discount of the penalties for breach of are the gaming between the contractual freedom and the fair justice. However, it should also follow the principle on the prohibition of civil right abuse in legal theory and practice.The second part is the discussion on the start-up of the discount of the penalties for breach of contract. The parties involved include the subject of the discount of the penalties for breach of contract. This view is supported by the People’s Republic of China(P.R.C.) and the Germany. There is another view stay on the different ground: Judges start the institute based on the authority which is held by Taiwan Province. In my opinion, we can make a compromise between these two attitudes. In Chinese Law, parties can apply to the court through the method of lawsuit and defense for the start-up of the discount of the penalties for breach of contract. But most of the cases, the denial of the parties can also start the Institute. I agree with this standpoint.The third part is the judging standard of the discount of the penalties for breach of contract. There is a drastic debate in theory. Moreover, the standard in cases is also not the same. In conclusion, the standards includes that taking the contract as the standard, taking the practical lose as the standard, and take the loan rate carried by the People’s Bank of China. However, as I stated about, it cannot cover all the situations for every single standard. Therefore, we should distinguish different type of contract and use different standards in different cases. And the principle of deposit cannot be analogized.The fourth part is the discussion on the adjustment on standard of the discount of the penalties for breach of contract. Different from the previous research method, I exploit the theory and the practice from the aspect of the contracts’ type. Apart from the recent consideration factors we have, we should take some objective factors into account. And the dynamic theory in law system is applied to the discount of the penalties for breach of contract. It emphasized that different factors’ emphasis on different perspectives. It also clarifies the status, the standards and the relationship of those objective factors.