Study On Unlimited Termination Of Employer In Construction Contract

According to contract law in China, hirer can terminate contracts unlimitedly. But Construction Contract is different from general Contract of Hired Works, and it's regulated by a separate chapter in contract law. So, does Employer have the same right of terminate contracts without any reason? Scholars hold different views about this subject, and in the judicial practice, courts also have different opinions about employer's unlimited termination, so their judges are also different. In this paper, the author makes a discussion about the right of employer, to make sure if employer has the right, and what's the legal basis of the right, and how to use this right.First of all, the author introduces the general theory of employer's unlimited termination in Construction Contract. It includes the concept, nature and essence of the right. Then the author makes a clear analysis about the differences between default and discharging contract. Then the author discusses three legislative models of Construction Contract, and specific provisions in these models. The author emphatically discusses that in our Contract Law, employer also has the right of terminate the contracts without any reason.Secondly, legal basis of the right is discussed in the second chapter. Construction Contract belongs to continuing contract. In continuing contract, relationship of trust plays an important role, so the righter has the right of terminate contracts with no reason. From the perspective of efficiency, employer should have the right of terminate contract with on reason.Finally, the last chapter is about how to use the right. Before the construction completed, the employer only can use this right when he doesn't need this contraction or he has lost trust with the contractor. When the employer terminate the contract, the contract they have performed is still effective, and the contract they haven't performed will lose the legal effect. The contractor can claims compensation from the employer with finished project, and can claims damage compensation whit unfinished project.