Application Of "Foreseeability Rule" In Liquidated Damages

The rule of predictability is the limitation of damages for breach of contract.France,Britain and the United States have clearly stipulated this rule in their legislation.Germany also adopted the cause-and-effect theory with the same function.However,the specific application of this rule contains many judgment factors,leaving judges with a large space for discretion,so the legislation of different countries is not the same.This paper mainly uses the comparative analysis method and case analysis method to discuss the application of predictability rules,and puts forward its own views on the application of predictability rules in China.The first part,the author makes an empirical summary of the precedents related to the "predictability rule" from the four aspects of case number,geographical distribution,court hierarchy,trial procedure and cause of action.The second part mainly reviews the historical development,theoretical origin and institutional functions of the predictable rules.Moreover,the predictability rule and the theory of equivalent causality are compared and analyzed.The third part is a predictable rules comparison research,the author by France,Japan,Britain,the United States and other countries legislation comparison,discusses the two major legal systems of the general and specific for predictability rules on the different understanding,through the analysis of national representative point of view,the author puts forward his own views,to provide reference for our country’s judicial application.The fourth part mainly explores the application of "predictability rule" under special circumstances,mainly including whether predictability rule can be applied when liquidated damages are agreed in advance in the contract and whether damages for breach of contract can be supported in the contract law.If so,whether predictability rule can also be applied.The fifth part is thinking about the exclusion and expansion of predictability rules.Predictability rules can be excluded in the case of fraud and intentional default,and can be applied in the case of efficiency default.