A Study On Legal Termination Of Contract And Grievous Imbalance Of Interests In Judicial Judgment

The system for legal termination of contract is when the legal conditions are matched,one party can have the legal right of termination,which could terminate the contract unilaterally.The application of this system should be discreetly.The legal provisions of the system for legal termination of contract are not perfect enough in current Contract Law,together with some of the concepts are lacked of the specific criterion lead to the problem of grievous imbalance of interests in juridical practice.This problem should not be ignored but still not brought to the forefront.This paper will take the objective consequence: grievous imbalance of interests between the two parties which comes from the juridical practice as starting point.Try to provide a reference to solve the problem based on the law-making and interpretation of the system for legal termination of contract,together with the ascertainment and analysis of the problem of grievous imbalance of interests.This paper consists of three parts:The first part,current system for legal termination of contract and raising questions of the grievous imbalance of interests.This part will first analyze two representative cases to raise the problem of grievous imbalance of interests which caused by the system for legal termination of contract.Secondly,I will introduce the current system for legal termination of contract in our country and comparative law in order to clarify the legislation and tendency in this system.Thirdly,this paper will analyze the theoretical basis of the system for legal termination of contract.The legislative intention of the system for legal termination of contract is the pursuit of the balance of interests between the two parties in specified conditions.The specific articles' aim is to restrict the conditions of legal right of termination's happen strictly in order to prevent the abuse of rights.This part will also overview the consequences of the termination of contract.The second part,reasons and manifestation of the grievous imbalance of interests caused by the system for legal termination of contract.This part will first define the grievous imbalance of interests and its judgment standard that the grievous imbalance of interests is an objective result that the interests between the two parties are grievously unequal,directly caused by the system for legal termination of contract.Secondly,this part will try to find the reason why the system for legal termination of contract caused the grievous imbalance of interests.It's because that the current system for legal termination of contract and the system for the consequences of the termination of contract are not perfect enough and some of the important concepts are obscure.And then this paper will expound the reasons and reasonableness about the improve of the system for legal termination of contract to avoid the grievous imbalance of interests.The third part,improvement thinking to the system for legal termination of contract in order to avoid the grievous imbalance of interests.As to improve the system for legal termination of contract,I will first analyze some important problem of the current system for legal termination of contract.Which including the certification of the aim of the contract cannot be attained and the main debt should be strictly and use in prudent.As to the consequences of the termination of contract,we have to affirm that the restitution is a creditor's claim and the range of damages should be expectation interests.Meanwhile,one party can get extra interests from restitution but there should be a upper limit in order to avoid the abuse of termination rights and balance the interests between the parties.Second,in consideration of the compilation of contract law under the Civil Code,I selected two of the representative suggestion drafts as reference in order to find the legislation and tendency of the system for legal termination of contract.At last,I will bring up two suggestions to improve of the system for legal termination of contract to avoid the grievous imbalance of interests in the legislation level.Make the grievous imbalance of interests as a restrictive clause to the system for legal termination of contract and introduction the system for part termination of contract.