Disgorgement Of Profits For Breach Of Contract

Disgorgement of profits for breach of contract is a new concept of law.The normal way to remedy for breach of contract by most of the countries is allowed the observant party require for the compensation in accordance with the loss,and depriving the breaching party's interests for the compensation exists only in special circumstances.However,in some situations,such as breaching the contract deliberately for the sake of of gaining more benefits, this system make sense.Disgorgement can effectively deter deliberately default from the front, give full compensation observant person, provide powerful supplement for the traditional compensation system.Draw lessons from other countries' legislative cases, therefore, to explore the theoretical basis of the concept of the new law and system structure, has a practical significance.This paper will be divided into the following four parts:Chapter 1: Through the analysis of cases of trust, intellectual property and the specific cases of the fiduciary activities, define the disgorgement of profits for breach of contract. Summary of practical and theoretical problems that in our country one party breach the contract deliberately in order to get more benefits, and consider whether this system can solve this problem to point out the research direction of this article.Chapter 2: The inadequacy of traditional compensation system in our country. After investigate a large number of cases and draw a comparison, we sum up that the rules of contract damages relief is inadequate, unjust enrichment system generally applied as complementary, there is differences between contract loss rules and disgorgement. To demonstrate the traditional damage compensate, for all its imperfections, it is necessary to apply disgorgement of profits system to fill the breach of contract.Chapter 3:The analysis of the legislative cases of other countries for reference. Draw lessons from common law system in the case of Britain and the United States, in the application of the system come to the conclusion that the system can be applied to the contract area. Learning German law of continental law system applicable in the field of six specific cases.Chapter 4:The value of the disgorgement of profits system. The disgorgement of profits provide powerful supplement for the traditional compensation system. To prevent deliberate default, protect the transaction security and property rights.Chapter 5:The structure of disgorgement of profits for breach of contract system. First of all, the theoretical grounds, there has four composition rules. Secondly, analysis the disgorgement of profits for breach of contract system of specific application fields for breach of duty of loyalty, in violation of the prohibitive obligations and violation of specific obligations situation, to regulate the abuse of the system. Finally, the definition of the benefit compensation for positive benefit and negative benefit.