The Study On Pre-contract

Precontract is a contract that parties make an appointment to conclu de a new contract in the future. The aim of precontract is to conclude a later contract. Due to the restrictions of law or the objective fact, parti es conclude a precontract firstly to restrict the both side and make sure that the later contract is concluded. As to the standard of precontract’s c ontents, first of all, the both parties need have the declaration of will of concluding a later contract in the future. And then it needs include the specific parties, corpore, and its amount. As a independent system, prec ontract is different from later contract, letter of intent, and conditional or time limit contract.Effect of precontract is to produce an obligation that makes the part ies negotiate in good faith and conclude later contract. The obligation is different from the faithful negotiation obligation of culpa in contrahend o. The former is a contract obligation, but the negotiation obligation of culpa in contrahendo duty occurres only in exceptional circumstances. In principle, it should follow the principle of contract freedom. Therefore, the existence of precontract is worthwhile and the obligation of culpa in contrahendo cannot replace it.Responsibility for breach of precontract is not constant. We should deal with it differently according to different situations. If the content of precontract includes only the specific parties, corpore, and the amount, we generally cannot force the party concludes later contract. And the sc ope of compensation for damage can only be equal to the compensation of trust benefit. If the content includes also the price or more, and the uncertain contents are not negotiated or cannot be decided because of ob jective situations, we generally can force the party concludes the contract or force the party assumes liabilities are equal to the performance bene fit of later contract. If the content includes also the price or more, but t he contents are uncertain because of subjective situations, we generally c annot force the party concludes later contract or force the party assumes liabilities equal to the performance benefit of later contract, but the sco pe of compensation for damages can be more than the compensation of t rust benefit. The specific range isdecided according to the specific conte nts of precontract and the nature of contract.The observant party of contract has the right of terminating the con tract and can ask for compensation after the termination of the contract. As to the the scope of compensation after the termination of the contra ct, is the same as the compensation obligation of breach of precontract.