Study On The Statutory Dissolving Conditions Of Contract

The statutory dissolution of the contract is the core part of the system of contract dissolution.The legitimacy of the statutory dissolution of the contract lies in the balance between contract freedom and contract strictness,formal justice and substantive justice.The purpose is to free the parties from the non-performance or the contracts that has no possibility to perform;to protect the parties to avoid unfair results within the necessary limits under the premise of abide by the contract.The key to the contractual statutory dissolution system is the contractual statutory dissolving conditions.Only when the statutory dissolving conditions are specified can the parties apply the statutory dissolution of the contract better,and at the limit the judicial discretion of the contract,prevent the legal dissolution of the contract from being abused at the same time.China's "Contract Law" draws on the advanced experience of the two major legal systems and international laws which stipulates five types of contractual statutory dissolving conditions in the Article 94.In the Judicial Interpretation 2 of the Contract Law,the contractual statutory dissolution of the change of circumstances is stipulated,although the provisions are more different,the basic criteria for judging and the footholds are the same,that is,the purpose of the contract cannot be achieved.There is a statement in the Contract Law that the purpose of the contract cannot be achieved,there is no specific provision for it.Both the theory and the practice are controversial about the judging criteria that cannot be achieved by the purpose of the contract.In the practice,the judging criteria for statutory dissolution of contract have the following rules: Article 94,paragraph 4,of the "Contract Law" is the most quoted provision in court trials,and the "exclusivity" of the contract becomes a criterion that the purpose of the contract cannot be achieved;in most cases,the court will consider that the contract can continue to perform or that the main obligation of the contract has been fulfilled to deny the parties' requests for dissolution of contract.At present,there are many defects and shortcomings in the statutory conditions of dissolution of contract based on Article 94 of the Contract Law.Different countries in the two major legal systems adopt different standards of statutory dissolution of contract.The civil law countries will stipulate various specific statutory dissolving conditions and impose restrictions on the statutory dissolution of contracts: only when the contract purpose is seriously damaged;common law countries and international organizations judge whether the contract should be dissolved according to the principle of fundamental breach of contract and contract failure;The key to judging the fundamental breach of contract is also that the purpose of the contract can not be achieved.Therefore,the non-realization of contract purpose should be the fundamental criterion and condition for the statutory dissolution of the contract.The fundamental breach of contract and the non-realization of contract purpose have always been two important criteria for judging the statutory dissolution of contract.There are limits and shortcomings in the application of the statutory dissolution system of contract.The criterion for judging the non-realization of contract purpose has been an important basis for courts to settle disputes over dissolution of contract since the implementation of contract law in our country.According to the law,most of the legal conditions for dissolution of contracts can be covered,It is beneficial for judges and parties to apply the system of contract dissolution and realize the freedom of contract.Specific Statutory Dissolving Conditions of contract have different applications under the criterion that the purpose of the contract cannot be realized: the rule of Circumstance Changes should only be applied to cases of obvious unfairness,and other objective changes except force majeure and Circumstance changes can also become Statutory Dissolving Condition of the contract as long as the purpose of the contract can not be achieved;one party delays performance and fails to perform after being urged,it shall be considered that the purpose of the contract can not be realized;If the purpose of the contract cannot be realized,the partial non-performance of the contract and the non-performance of the accompanying obligations can also lead to the statutory dissolution of the contract.In the process of compiling the contract law of the Civil Code,the system of statutory dissolution of contracts has been partly amended.For the future system of statutory dissolution of contracts,we should adopt the legislative model of summarizing and enumerating to stipulate that the non-realization of contract purpose shall be the fundamental condition for statutory dissolution,and formulate specific applicable conditions for statutory dissolution according to different circumstances,so as to further standardize the application of the conditions of the system of legal dissolution of contracts in our country.