A Study On The Compensation Caused By Interest In Breach Of Contract

Compensation for damages caused by interest in breach of contract serves to fulfill obligations.Though China's current legislation has put much effort to it,the detailed scope,rules and methods still need further development while has caused numerous discussions.This essaySummarizes a large number of domestic and overseas cases as well as legislation to give a well-rounded analysis,which will definitely help safeguard legitimate rights and achieve social justice.This essay focuses on the issue of compensation and is divided into four parts.The first part analyzes two pairs of cases to conclude current verdicts and puts forward the most discussed problems.The second part starts from the definition,characteristics and the distinction between direct damages,interest in performance and reliance interest.The definition will be thoroughly discussed and acts as the main role in this assay.The third part discusses the general rules that should be followed which include “definite rule ”and “predicable rule ”.The latter is not included in current legislation,so overseas practice ought to play a big role.The former is not precise still,so further discussion is a necessary strategy as well.The forth part focuses on calculation issue in practice and proposes some applicable methods to provide a possible standard for future jurisdiction.And also establish a healthy environment for market economy.