The Calculation Of Prospect Interest In Breach Of Contract

In breach of contract, the compensation for the lost prospect interest is a core part in damage compensation system,but there is not enough research on the calculation method. Therefore, this paper is try to discuss the type and calculation method of prospect interest on the foundation of multitudes of practical case studies, with the purpose of providing judicial practice with useful and practical information.Apart from the introduction, the content is divided into five parts.The first part mainly deal with the definition of prospect interest, to show that one profit is the added interest which comes from the utilization of property acquired by contract, another profit is produced by the contract itself. Subsequently, with a discussion of characteristics, it shows that prospect interest is a kind of quiet certainly property profit, belongs to expected right.The second part is about the extent of compensation on prospect interest. The foreseeable rule is a limitation on prospect interest, it rules the fringe of it's compensation; While negligence offset regulation, the rule of deduction of collateral benefits and reducing liability rule are just reduce the amout of prospect interest, to protect delinquent party from assume unnecessary loss.The third part reorganize the type of prospect interest, divide it into two types. One kind is based on the second transaction and another one is directly produced by contract itself. Apart from that, this article also discuss about the prospect interest of special purpose contract and chance loss.On the foundation of the kind of prospect interest referred above, the fourth part summarizes calculation methods around a line of bussiness. In conclusion, calculation methods include the difference method, the self-operating profit standard, new business standard, market standard, based on contract, based on legal rules, appraisal firm evaluation and agreed method.The fifth part is about the compensation of prospect interest under some specific contract situations. Even in the situation of contracting fault liability, the right of termination without any reason and injuring performance, the non-breaching party's prospect interest can be compensated when there are enough evidences to prove these expected damages.