| Form of contract has become more and more regularly accepted nowadays.Both parties of the contract hope to gain benefits compliance with law,but violations happened times by times,such as breach of contract.When breach of contract happens,it is essential to maintain minimum damages,and to compensate observant party financially.The expectation interest refers to the interest that observant party would gain if the contract was performed.The goal of the compensation of damages of expectation interest is to make the financial sate of the observant party return to the due state where the contract would be fulfilled as agreed.The expectation damages play important role in the compensation for breach of contract.The thesis hereby concludes the scope of the compensation for the damages of expectation interest and how to calculate the sum of the compensation are quite important issue.This thesis firstly makes a short introduction to the purpose and methods of remedy for breach of contract help to understand how compensation for damages at last defeats all the other ways in Equity and becomes the most common ways of remedy.Secondly,the author introduces the concept of the expectation of interest and limited rules to apply it to help us to find the reason and foundation of compensation.Then on,by comparing rules relating to expectation interest and claims for damages of it in American contact legal system with that in Chinese law,it is not difficult to find that Chinese jurisprudence lack distinction when design such legal rules.Thirdly,the author studies the real intention of the compensation rule for damages.The intention refers to cover the loss resulted in breach of law,and the scope of such compensation would not across the line of total loss.Normally,vindictive damages shall be prohibited without written regulation of law.Finally,the United States designs the framework of the compensation rule through the Uniformed Commercial Code,the Restatement and common law cases.China lacks such legal environment.In China,similar regulations is set in few articles in the General Rules of Civil Law and contact law,and such regulations are very general and vague,merely directing administration of justice.The reason for such difference may be that the operation of calculation rule in the U.S.relies on its unique litigation mode,for example,legal precedents and the jury system,which would be hardly found and performed in China.However,since the core of the interest of compensation for breach of contract is the same,it would be necessary for China to improve its legislation and judiciary on calculation rules of compensation for expectation,by taking the U.S.law as reference. |
