Study On The Damage Compensation For Rescission Of Financial Leasing Contract

The financial leasing contract is a named contract stipulated in the contract law of our country.On May 27,1996,the Supreme People's court formulated the “Provisions on Several Issues Concerning the Trial of Disputes over Financial Leasing Contracts”.On March 1,2014,the Supreme People's court revised the regulations,issued "Interpretation of the law applicable to financial leasing contract disputes" which came into force and provides specific guidance for the judicial practice of China's financial leasing contract.One of the core principles of contract law is freedom of contract,and the termination of contract is the embodiment of the principle of freedom of contract in the technical level of contract law.However,the principle does not apply to the financial leasing contract for the reason of its large investment,long period,and the subject matter being specified by the lessee,so there should be restrictions over the lifting of the financial leasing contract.Of course,lifting the financing lease contract is allowed when there is fundamental breach of the contract or under special provisions which made it impossible to fulfill the contract.Based on the principle of fairness,the parties should be allowed to exercise the legal or contractual right of rescission,allowing them to be extricated from contracts which cannot be fulfilled.This article is about the study of the compensation for rescission of financial leasing contract.But logically,the claim for damages is based on the termination of the contract.The termination of contract is closely related to the consequences of rescission.That is,there is no liquidation of the contract without the rescission of the contract,and so there is no compensation for the damage.Therefore,it is necessary to analyze the dissolution of the financial leasing contract in the process of studying the compensation for the financial leasing contract.Through systematic analysis of the concept,characteristics and the theoretical basis of compensation for rescission of financial leasing contract,combined with China's existing problems in financial leasing contract compensation,this article puts forward a systematic conception of financial leasing contract damages and compensations.The first chapter is the definition of compensation to relieve the damage of financial leasing contract.This part mainly includes two sections which introduce the definition,characteristics,classification,rules and reasons of financial leasing contract rescission,with the second section specifying the concept,theoretical basis of the financial leasing contract damage compensation,breach of contract responsibility,and retrieval and type of the lease item.The second chapter mainly analyzes the main problems of the damage compensation for the financial leasing contract including such phenomenon that the contract law provisions by China's various Departments for financial leasing contracts are not the same,and the basic situation and defects of various types of compensation for financial leasing contract rescission.The third chapter mainly elaborates the basic situation and related systems of compensation for financial leasing contract rescission in the International Association for the Unification of Private Law,Germany,the United States,Russia,Republic of Serbia and the Macao area,analyzes and summarizes their advantages to help perfect China's system.The fourth chapter proposes ways to solve the problems in China's financial leasing contract damage compensation system,learning from the advanced legal system and experience in the United States,Germany,Republic of Serbia,Macao and other regions,combined with China's own characteristics.These include improving the financial leasing contract dissolution system,improving the damage compensation system,improving compulsory derogation,improving rental property publicity system,improving lessor's recall rights system,and perfecting the liquidated damages system.