The Study Of Price Reduction System Under Chinese Contract Law

The price reduction is stipulated in Article 111 of Contract Law of the People's Republic of China.If the quality is not in conformity with the agreement,the injured party may reasonably choose liability for breach of contract including reducing the price or remuneration.The provisions of the articles of law are relatively rough,and there are no provisions on the constituent elements,calculation methods,legal effects and right exertion method of the price reduction.In academic circles,there are many disputes in this system.Incomplete legal provision and the lack of unity in academic circles lead to the confusion in judicial practice,and there are also inconsistencies in court judgments.In the face of so many contradictions and disputes,it is necessary to interpret the price reduction system under the Chinese contract law.Based on the theory and judicial practice,and referring to the relevant systems of comparative law,this paper discusses the disputes in price reduction system under Chinese contract law in detail,and draw appropriate conclusions,in order to provide a feasible theoretical basis for the court judgments and unify the confusion and inconsistency in judicial practice.This paper mainly analyzes and discusses price reduction system through the following five parts.The first part analyzes the nature of the right of price reduction.Clarifying the nature of the right of price reduction is the premise to solve many problems involved in the system of price reduction,which determines right exertion method and legal effect.Through combing the liability for warrant of defects and liability for breach of contract,this part summarizes the disputes between the theory of right of formation and the theory of right of claim in the academic circles,and judges which theory is more appropriate,so as to clarify the nature of the right of price reduction and get the legal effects of the exertion of the right of price reduction.The second part defines the constituent elements of price reduction,including the elements shared with other remedies for defects,as well as the unique elements of price reduction.The third part discusses the calculation method of the price reduction amount.The most critical problem in the exertion of price reduction is the calculation of the amount of price reduction,is also the focus of this paper.In academic circles,there are the theory of differentials and the theory of proportion.Interpretations of the Supreme People's Court on Issues relating to the Application of Law in Hearing Cases Involving Disputes over Contracts of Sales also provides the calculation method.However,in judicial practice,the calculation methods adopted by the court are not uniform.There are the theory of differentials and the theory of proportion,and the understanding of the theory of differentials is not correct.This paper analyzes the theoretical basis behind the calculation method,and obtains the most reasonable calculation method,which provides a unified theoretical basis for judicial practice.The fourth part discusses the relationships and differences between the price reduction and other remedies for defects,so as to clarify the choice of remedies.Due to the similarity between the price reduction and other remedies for defects,there are confusions in application and selection.In order to correctly understand the relationship among the remedies for defects,this part discusses the relationships and differences between the price reduction and other remedies for defects,so as to help the injured party to make a reasonable choice of the remedies for defects and solve the confusion in the application of the remedies for defects.The fifth part discusses the problems in the application of price reduction.With regard to the types of contract,this paper discusses whether the price reduction is a general remedy for defects applicable to various types of contracts,or only applicable to some types of contracts.With regard to the subject of execution of price reduction,it is necessary to discuss whether the price reduction can only be applied by the parties in a reasonable choice or by the court on its own initiative.