With the rapid development of market economy, the precontract has penetrated into every aspect of our lives. Especially in recent years, the price of Chinese real estate market fluctuations, disputes about the pre-contract of commercial housing are endless. < Interpretation of the Supreme People’s Court on Issues Concerning the Application of Law for the Trial of Cases of Disputes over Sales Contracts>, Article 2 is the first time to establish a reservation contract system in the real sense, clearly states the nature of pre-contract is an independent contract, parties have a duty to sign contract, at the same time who violates pre-contract shall also be liable for breach, which filling our pre-contract legislation gaps. According to the implicit message of the provisions, the effect of pre-contract take the point of “should signâ€, which is more able to balance the interests of the parties. Under the prerequisite of “should signâ€, party don’t fulfill the obligations of sign the contract that is liable for breach, in addition to changing circumstances or force majeure. It will undoubtedly increase the cost of the defaulting party’s breach, finally achieve the fundamental purpose--- conclude real contract. Based on the law of contract, this paper first starts with case analsis, and then goes to the further study of judicial interpretation concerning pre-contract system, aiming to explore the essence, functions as well as remedies of housing pre-contract, which I think can make a contribution to the legislation in this field. |