Research On Remedy System Of The Pure Economic Loss Of The Third Party

Privity of contract makes the contract entries into force only between the Parties,which means the third party can not enjoy the rights of the contract,nor fulfill corresponding duties.However,with the development of the modern market economy,the performance of the contract may aggress upon the insterest of the third party outside the contract,known as the pure economic loss of the third party.There is no clear rules in our present law about remedies of such loss,and juridical practice is also cautious about it.The concept of pure economic loss of the third party seems abstract,however such phenomenon commonly exists in reality,and there're different remedies in different countries.This paper begins from contractual obligations and tort liability,through the discussion about legal advocacy channels and the analysis of the feasibility,to find out the best remedy of third party pure economic loss: establish a new institution to protect the right of the third party,or to modify the tort law to strengthen the protection of the third party?This paper is divided into four chapters.The first chapter is Introduction.Discussing the “Wang Baofu Case” which is published in Gazette of the supreme peoples court of the peoples republic of china to induct the question here,which is the best remedy of the right of third party when the performance of the contract may aggress upon.Then put forward the thinking of the case.Firstly,which remedy shall we take? Contract liability or tort liability? This is a priority in all problems.Secondly,what kind of loss does third party suffering? Rights or interests? It turns out that's pure economic loss.The end of the chapter discusses the dilemma in remedying the pure economic loss of the third party from contract law and tort law.The second chapter analyzes what can contract liability provide to the third party,then we find out the remedy can be to expand the scope of the protection of contract.This remedy is based on the breaks through the privity of contract.By study of comparative law,we can find out both Germany and the USA establish a new institution,Vertrag mit Schutzwirkung für Dirtte and Third Party Beneficiaries of Warranties Express or Implied,to protect the third party through contract liability.Although there are different remedy in Germany and the USA,such new institution still triggers controversy in both theoretical interpretation and judicial practice.The third part analyzes from the angle of tort liability,the expansion of the modern tort liability makes the remedy possible to the third party.In the next section,the paper clarifies the concept of the pure economic loss and the pure economic loss of the third party.By study of comparative law,this part analyzes the remedy of pure economic loss in both civil law and common law.In common law,it is protected by the exception of the exclusionary rule;while in civil law,France law protects the pure economic loss by defining the general tortuous act.The last chapter discusses which remedy China should choose to protect the pure economic loss of the third party,and the paper gives its perspective on this issue: tort liability.Firstly,by discussing unsupported cases in judicial practices and analyzing the irrationality of the expansion of contract liability,fully prove there's no necessity to create a new institution in contract law.Secondly,the paper explain the feasibility of the remedy based on tort liability.In the final section,it's about how to relief.The paper offers two ways: the conjunction of the general clause and typology,and define the constitutive requirements to restrict the range of interests protected by tort law.