Compensation For Damages After The Lawful Recession Of Contracts

Although Article 97 of the contract law stipulates that the parties have the right to claim compensation for the loss after the termination of the contract,it does not specify the nature and scope of the claim for compensation for the damage,which have always been controversial in the academic and practical circles of our country.The legal rescission of a contract is one of the types of rescission of a contract,and it is also the most common type of rescission in practice.Article 97 of the contract law of our country also stipulates that the legal effect after the termination of the contract includes "restitution" and "other remedial measures".The research on the compensation for damages after the legal termination of the contract cannot be separated from the analysis of the connotation of "restitution" and "other remedial measures".First of all,this paper analyzes the relationship between contract rescission and compensation for damages,and clarifies that different theories have different interpretation paths under the coexistence doctrine.This paper then discusses the meaning,nature and specific content of the specific effect of "restitution" and "taking other remedial measures" after the termination of the contract,so as to further discuss the boundary between the restitution obligation and the damage compensation after the legal termination of the contract,and points out the wrong cognition and practice of confusion between the restitution obligation and the damage compensation in practice combined with the specific cases in judicial practice.The second part of this paper discusses the scope of the claim for damages after the legal rescission of a contract.Although it is generally believed that the nature of the claim is the claim for damages for non-performance of a debt,scholars hold different views on the specific scope of the claim for damages.Through combing and analyzing the existing views of the academic community in China,this paper draws the final conclusion that the scope after the legal termination of the contract should be based on the compensation for performance interests,supplemented by the compensation for trust interests and inherent interests.This view is also the development trend of legislation and practice.But there are still some wrong practices in practice,such as compensation for the loss of trust interests and performance interests at the same time,resulting in repeated compensation.Of course,the scope of compensation for damages after the legal termination of the contract should still be limited,and some restrictions such as mitigation of damages and offsetting of profits and losses also have special application due to the legal termination of the contract.Finally,this paper discusses the calculation method of compensation for damages after the legal termination of the contract in combination with the judicial practice,focusing on the narrow abstract calculation method and alternative transaction rules.These two calculation methods are currently not regulated in the contract law of China,but they are applied in practice.Generally speaking,the standard time of compensation for damages after the legal rescission of a contract should be when the contract is rescinded,but it should be measured in the case of one party's breach of contract before the time limit for performance of the contract and malicious delay in rescission.