On Study Of Several Issues On Compensation For Contract Breach Damage

The core of civil law is compensation for damage, and that of contract law is compensation for contract breach. It is a type of liability for contract breach as identified by law of various countries, as the same time it is also a mode of remedy most important and widely used in various countries as remedy for breach of contract. It mainly aims to make amends for the economic interest loss of one party caused by breach of contract of the other party. The principle is to compensate by currency; and there are also exceptions in which it compensates in kind. The interest of the non-breach party is made amends for through compensation, so as to maintain the fair and justice economic order and market order. With regard to the goal of compensation for damage, the theory is clear, however, once it is applied to the judicial practice it will be controversial. There are various opinions about the range and mode of compensation. In respect to the general theories related to compensation for contract breach damage, comparing the legislations between China and foreign countries, in consideration of judicial practice, this thesis discusses issues such as the application of system of compensation for contract breach damage in our country and the limitation of principle of complete compensation. The thesis consists of three parts.The first part discusses the concept and characters of compensation for contract breach damage. First, it introduces the concept. Compensation for contract breach damage refers that when party in breach does not perform or completely perform the contract obligation and causes loss to the other party, he should be liable to compensation for damage according to laws or the contract. With regard to compensation for contract breach damage, there is a broad sense and a narrow sense. The one mentioned in this thesis refers to the narrow sense of compensation for contract breach damage, i.e. fee of compensation for contract breach damage. The author also emphasizes the issue as whether compensation for contract breach damage is consistent with contract liability. Through analysis and comparison, it comes to the conclusion that they basically are consistent. Additionally, it introduces the character of compensation for contract breach damage. Compensation for contract breach damage is a kind of liability of debtor when he violate the contract obligation; compensation for contract breach damage is characterized by remedy; compensation for contract breach damage is arbitrary to some extent; the principle of compensation for contract breach damage is to compensate the litigant for all loss actually suffered; and compensation for contract breach damage is essentially the reflection of relations of exchange. Through the above-mentioned characters, it comes to the conclusion that compensation for contract breach damage performs a key role in rapid identification of the party in breach and the liability for contract breach and in rapid resolution of disputes in contract. At the same time, the liability of compensation for breach has been identified during contract signing and the litigants is aware of the price for breach, so compensation for contract breach damage has the functions to urge the litigants to comply to the contract obligation and perform the contract seriously.The second part discusses the range of compensation for contract breach damage. First, it introduces the premises for deciding the range of compensation for contract breach damage. This thesis defines the range of compensation for contract breach damage from the viewpoints of obligee and obliger. In addition, through comparing the contents of range of compensation for contract breach damage in China and foreign countries, is discusses the legislation content related to this issue. a). Countries of Anglo-American law system adopt "three classification method" i.e. return interest, trust interest and expectation interest. b). Countries of continental law system adopt "two classification method" i.e. actual loss and attainable interest l...