Study On The Exercise Of The Defaulting Party To Rescind The Contract

In the process of codification of the Civil Code contract,whether the defaulting party enjoys the right to rescind the contract is the core controversial issue,which has aroused extensive discussions in the academic circles.Prior to this,the judicial practice has explored the right of the defaulting party to rescind the contract more abundantly,and there exist cases in which the judicial authority has granted the defaulting party the right to rescind.From an interpretive perspective,the right to rescind the contract of the breaching party should be located in Item 2 in Article 580 of the Civil Code.Although this article has been implemented,there are still questions about this right in academic circles,so it is more crucial to understand the importance of this system in depth.The right to rescind the contract of the defaulting party not only does not conflict with the principle of strict compliance with the contract,but also can be a complement to other systems,effectively solving the problem of contract deadlock and realizing the value of private law efficiency.Although the system of the defaulting party’s right to rescind the contract should be established,the defaulting party’s right to rescind the contract cannot be a general rule.The defaulting party can only exercise this right to balance the interests of both parties if the conditions of exercise are met,such as the relationship of trust between the parties breaks down,there is an obstacle to performance and the purpose of the defaulting party cannot be achieved,the failure of the rescuer to exercise the right to rescind leads to an impasse in the contract,and continued performance is manifestly unfair to the defaulting party.The right of the breaching party to rescind the contract is a right of action,and the breaching party shall rescind the contract through judicial proceedings.The judicial authority shall apply to the judicial authority for the cancellation of the contract based on the right,and the judicial authority shall examine the conditions of cancellation and finally confirm whether the contract is released and the time point of cancellation in the form of a decision.After the defaulting party’s right to rescind the contract is exercised,the judicial authority allocates the responsibilities of both parties in accordance with the contractual agreement or the law,and determines the scope of damages by the rule of reasonable predictability,and involves the application of the liquidated damages clause,the deposit clause and the damages.In addition to damages,it will also involve the application of other remedies.