Research On The Arbitrary Right Of Rescission Of The Entrusted Contract

In China’s judicial practice,there are abuses of the right of arbitrary rescission of the entrusted contract stipulated in Article 410 of the Contract Law,and a wide range of applications.There are also great disputes about compensation after the rescission of the contract.Most courts only support direct loss compensation,but not indirect loss compensation,which makes the provision vague in the actual operation process.After studying a large number of judicial cases,the author realizes that the exercise of the right of arbitrary rescission of the entrusted contract and the issue of compensation after exercising are worthy of study in both theoretical and practical circles.Therefore,in line with the concept of fairness and fairness of law,starting from safeguarding the legitimate rights and interests of both parties to the Commission contract,this paper chooses to study the right of arbitrary termination of the Commission contract.The main idea of this paper is to start from the general overview of the principal contract and its legal basis,expound the problems existing in the exercise of arbitrary rescission right of the principal contract in China and the compensation problems after the rescission of the contract,and finally put forward the author’s point of view,hoping to be helpful to the application of arbitrary rescission right of the principal contract in China’s practice.The first part mainly discusses the basic theory of the right of arbitrary rescission of the entrustment contract.On the basis of discussing the general concept of the right of arbitrary rescission of the entrusted contract,this part also expounds the basic legal characteristics of the right of arbitrary rescission of the entrusted contract and the jurisprudential basis of exercising the right of rescission.The second part mainly analyses the relevant theory of arbitrary rescission right of principal contract in typical countries of continental law system,mainly from Germany,France,Italy and Japan,through the provisions of foreign related theories,thus corresponding to the shortcomings of our law,and through the analysis of foreign related systems,to find out the solution of our country.The third part outlines the main problems existing in the right of arbitrary rescission of the entrustment contract.This part focuses on the issue of the right of arbitrary rescission of the entrusted contract from four aspects.Firstly,the problems in the exercise of the right of arbitrary rescission of the entrusted contract.In practice,both parties to the contract have the right to propose the termination of the entrustment contract at any time,and analyze and prove its unreasonability.Secondly,the validity of special waiver of arbitrary right of rescission of entrustment contract.There are different theories in theory and different applications in practice.Thirdly,the compensation after the arbitrary termination of the entrustment contract.This part is also the key part of the paper,pointing out that it is unreasonable to only compensate for direct losses and not indirect losses in our practice.The forth part summarizes the author’s views on this topic.It includes distinguishing the types of the entrusting contract and making different restrictions;it should be effective in principle for both parties to waive the arbitrary right of rescission of the entrusting contract,but allow exceptions to occur;it also puts forward specific suggestions on compensation after the arbitrary right of the entrusting contract is exercised,especially when the two parties have agreed to compensate for the available interests,they should compensate according to their agreement.