The Study On The Compensation Of Expectation Interest

Expectation damages is the key component in breach of contract damages system. The basic goal of contract damages is to compensate for the injured party and ensure the value to the injured party of the performance that should have been received, as the contract have been carried out. In the case of George Hawkins v. McGee, the U.S. establish the remedy against default rules based on expectation interest for the first time, which is significant in perfecting American the contract law and the default relief system.The expectation interest is also under provisions of the 113rd in Contract Law of China,this is a big improvement in author's opinion. However, because the expectation interest itself is future-oriented and uncertainty, so the judge denied the consideration of the expectation damages for it is difficult to calculate ounfair. Therefore, the first pressing thing is to construct a system about the expectation damages which plays a actual role in guiding judicial practice and protecting the injured party.This paper consists of three parts:The first part is "Put forward two arguments".Through the introduction of two cases, the author does a preliminary analysis and put forward the focus.The second part is'The establishment of the expectation interest". The author states that what is the expectation interests and its established conditions from a theoretical perspective. In the "what" part, the author analyzes the standpoint in our country on the basis of the comparison between the Anglo-American legal system and the Continental legal system. In a word, the expectation interests is the value received after the contract carried out. In the "establishment" part, the author agreed that it should satisfy four elements, namely a valid contract, a breach of the contract act, damages, causality, which discussed in the two case mentioned in the first part.The third part is "The anspruchsgrundlage of the expectation damages". According to the 113rd in Contract Law, the author introduces the legal basis of expectation interests in detail. The author holds that the scope of compensation shouldn't only be limited to pure profit, but also affected by the rules of Foreseeability, Profit and loss, Mitigation and Certainty.The fourth part is "The calculation on amount of the expectation damages". In order to adapt itself to the new situations of judicial practice, it is first important to make clear of parameters, methods and general formula for the compensation of expectation interest. And the combination of case are discussed in this part.The fifth part is "Solutions". By analysing two court decisions, The author points out some imperfections and can be used for reference for expectation interests. Finally,the solutions of the problems related to the expectation interests are summarized at the end of the part.