On Damages For Breach Of Contract In The Foreseeable Rule

Compensation for losses is very important, scholars have been feeling perplexed in how to ascertain the scope of the damages compensation---The types of damages confusing. Other countries are studying the scope of damages and means China’s relevant laws and regulations also have some regard. The paper tries to make the rule be more perfect, through researching the foreseeable rule. It includes the following five parts.The first part is about the basic theory of the foreseeable rule. Scholars in different countries have different opinions. In the Civil Law System, there are mainly meaning autonomy theory, causation theory and policy theory; In the Common Law System, there are theory of fair, theory of efficiency and theory of social need contract reflects two parties’ common idea, based on their considerations of risk which will happen. The foreseeable rule accords to the basic implication of meaning autonomy. Efficiency principle, which is only explained in economics, isn’t different from meaning autonomy inherently.The second part analyzes the value and function of the foreseeable rule. The value of law is its spirit and soul. The value of the foreseeable rule lies in meeting parties’some needs, and embodies the aims:efficiency, fair and justice which are legislators pursue. As a method to define the scope of compensation for breach of contract, its main social functions are distributing risks rationally, promoting transaction efficiency, encouraging to share information and realizing the fair competition.The third part discusses the relationship between the foreseeable rule and other related institutions. Firstly, the author uses the dichotomy of the causality and the analysis of the function of the causality to discuss the differences and relations between the foreseeable rule and causation, especially compare the foreseeable rule with the correspondent causation. Secondly, through expounding the action of the foreseeable rule in judging fault responsibility, the author points out the relation between the two institutions. Thirdly, the author discusses the foreseeable rule in tort law and reveals the common essential function of the foreseeable rule in tort law and that in contract law and some differences because of existing in different law area.The fourth part is the keystone of the paper. Firstly, the part introduces the foreseeable rule’s elements, standard of forecast and using exceptions, especially discusses the foreseeable contents by damage types in different countries, and points out that the foreseeable rule mainly regulates special damage and indirect damage which are uncertain oppositely. In our country, it mainly constrains the damage compensation of future benefit. Secondly, when we judge whether one can foresee some damages, we should consider particular condition of the parties, contract content. Thirdly, the author introduces some exceptions which are intention, obviously injustice etc in the course of using the foreseeable rule.In the last part, the author simply introduces the foreseeable rule in our country and gives some suggestion to make our legislation more perfect. There is only one article in the contract law, general and unilateral. So the author suggest: firstly, we should determine the contract of foreseeable rule based on different conditions; secondly, clearly regulating that the foreseeable rule can’t be used when one is intentional; thirdly, some other particular conditions can’t adopt the foreseeable rule.