Legal Application Of The Breaching Party’s Right To Rescind The Contract

Under the current legal system in China,an important aspect is the provision of the right for the breaching party to terminate a contract.However,this system has been criticized by some scholars.The author believes that legislation is urgently needed to break through the contract deadlock in current judicial practice.However,due to the overly vague provisions regarding the breaching party’s right to terminate the contract,there are still many inconsistencies in the application of the law in judicial practice.Therefore,it is necessary to clarify this rule through legislation.This article is based on a typical case and conducts an empirical study from three aspects: whether the breaching party has the right to terminate the contract,the conditions for exercising this right,and the legal consequences after the contract is terminated.The first part of the article poses the problem.After preliminary sorting of the housing lease dispute case involving Chen Sheng,Zhang Yanxiang,and Deng Tieyan,and combining the court’s judgment,the author summarized the controversial issues involved in this case as the theme of this article.The second part provides a theoretical analysis of the breaching party’s right to terminate the contract.The system allowing the breaching party to choose to terminate the contract is stipulated in the "Civil Code," but there has never been a cessation of questioning and criticism of this provision in the academic community.The author will discuss this issue from two aspects.Firstly,the theoretical basis for the breaching party’s right to terminate the contract system.This system does not violate the principles of fairness and good faith and reflects efficiency value.Secondly,an analysis of the existing system.Based on the current legal system,the general right to terminate a contract cannot provide an effective solution to resolve a contract deadlock,such as changes in circumstances and the diminution of value rules.Therefore,it is reasonable and necessary to confirm the breaching party’s right to terminate the contract.The third part analyzes the conditions that must be met for the breaching party to terminate the contract.In addition to excluding the right to demand continued performance,it is also necessary to ensure that the contract’s purpose cannot be achieved,the breaching party’s conduct does not have subjective malice,and the refusal to terminate the contract is obviously unfair to the breaching party and violates the principle of good faith.To protect the interests of the other party to the contract,all of these conditions must be fully met.The fourth part discusses the legal consequences after the contract is terminated,primarily how to allocate liability for damages.When the people’s court deals with compensation for damages,it must fully compensate the other party to the contract for losses suffered due to the breach.If the specific amount of losses suffered by the other party needs to be determined,relevant rules can be used for calculation.