The Limitation Of Right Of Optional Cancellation Of Entrustment Contract

The right of optional cancellation of entrustment contract is stipulated in Article410 of the “Contract Law" in China.However,the scope,conditions as well as the extent of compensations of the right have not been clearly stipulated in the article.The academic and judicial practice have different interpretations on Article 410.These inconsistencies actually cause abuse of this cancellation clause by the parties.The aim of this thesis is to discuss the right of optional cancellation of entrustment contract.The boundaries of the entrustment contract will be clearly defined by comparing the entrustment contract with other similar contracts.In order to rationalize the position of the right of optional cancellation,the thesis will focus on the entire cancellation right system.As for the characteristics and historical development of the entrustment contract,this thesis will explore whether the right of optional cancellation of entrustment contract is reasonable.Comparing domestic and foreign legislation and doctrines,and according to the actual circumstances in China,a number of reasonable restrictions,such as the applicable scope and the scope of damage compensation will be imposed on the right.Thus the excessive abuse in practice could be changed.The introductory part of the article mainly includes the questions raised,the research value,the literature review,the main research methods,the structure of the papers,the innovations and deficiencies of the articles.The first Chapter of the thesis introduces the entrustment contract and the right of optional cancellation.The definition and the historical development of the entrustment contract are introduced firstly.In order to rationalize the boundaries toexercise the right of optional cancellation,the entrustment contract will be compared with the employment contract,the processing contract,Granting-a-Favor Relation.The characteristics,the position and the effect of the law will be discussed in the following parts.The second Chapter mainly analyses the theoretical foundation of the right of optional cancellation of entrustment contract.The analysis of this part will focus on the two characteristics of the entrustment contract,namely,its gratuitous and the trust relationship between the parties.The gratuitous nature of the commission contract makes it easier for the parties to rescind the contract.The entrustment contract is based on a trust relationship.If the trust relationship is lost,the parties should be able to release the entrustment contract.The third Chapter of the thesis mainly explains that what extent the right of optional cancellation of entrustment contract could be effectively exercised.The analysis of this part will focus on four kinds of entrustment contract.In order to limit the scope of the right,whether the parties of the above contracts are entitled the right of optional cancellation will be discussed in this chapter.The types of contracts mainly discussed in this section include civil paid commission contracts,commercial commission contracts,and trust contracts involving the interests of trustees.the forth chapter mainly analyses the extent of compensations of the right.The analysis of this part discusses the extent of compensations when the trustor exercises the right.There are two situations,compensable contract and voluntary contract.Secondly,from the perspective of the trustee,this section also analyzes the extent of compensation for the exercise of optional cancellation right.The situations are the same as the preceding part.The fifth chapter mainly summaries the restriction of the rights,covering the absolute and relative restriction.The absolute restriction is mainly about the restrictions on the fixed-term commercial entrustment contract,entrustment contract involving the benefit of the trustee and the commercial entrustment contract existing the agreement of abandoning the rights.The relative restriction is mainly to restrict the rights by compensating damage.When the contact is gratuitous,the extent of compensations is confined to the practical lose.While the contact is non-gratuitous,the extent of compensations is covering the practical lose and the acquirable interest.The acquirable interest should be calculated considering the differences between trustee and the trustor.