A Study On The Right To Terminate Contract Of The Defaulting Party

The right to terminate contract is a right that contract parties can terminate contract in accordance with the contract or the provisions of the law.After termination of contract,the rights and obligations of both parties will fall away.It is generally thought that only the observant party has the right to terminate the contract.Along with the development of social economy,only the observant party has the right not only cannot resolve the dispute,but will bring more disputes and a great waste of social resources in many cases.It's controversial that whether the defaulting party's right to terminate contract has legal basis,what is the justification of the right,what are the exercise conditions and limitations of the right.Thus,it is necessary to do a further study on these problems.This paper takes a house leasing contract dispute case as an example,which is a typical case that the court upheld the defaulting party to terminate the contract.Through this case,a phenomenon that courts support the defaulting party in terminating the contract according to different legal provisions is revealed,which raises questions such as is there justification of the right,what are the exercise conditions and limitations of the right.Through the analysis of legal rules and legal theory,it is proved that there is legitimacy of the right to terminate contract of the defaulting party for the right does not violate the basic principles of law,and there is space for the right in the current contract law.Article 94 of the Contract Law stipulates the legal right to terminate contract,it does not limit only observant party has the right to terminate contract.Article 110 of the Contract Law stipulates that the contract may exclude specific performance under certain conditions.In the perspective of comparative law,the traditional actual performance in civil law system is changing,damages is the primary remedy in common law system,and the efficiency default theory can provide reference for the construction of the right to terminate contract of the defaulting party.Since the right violates "pacta sunt servanda" principle,it is necessary to set strict conditions for the exercise of the right.Only on the conditions that the cost of specific performance is excessively high,the purpose of the contract has been frustrated,and the defaulting party shall pay full and sufficient compensation to the observant party,the defaulting party in good faith can exercise right to terminate contract by through prosecution.