国际商法5--Breach-of-Contract

Unit5BreachoftheContractWhenaperson’sperformanceisdue,anyfailuretoperformthatisnotexcusedisabreachofcontract.Notallbreachesofcontractareofequalseriousness,however.Somearerelativelyminordeviations,whereasothersaresoextremethattheydeprivethepromiseeoftheessenceofwhathebargainedfor.Thelegalconsequencesofagivenbreachdependontheextentofthebreach.ClassificationofContractBreach1.Non-performance（1）Subjectivenon-performance不愿履行（2）Objectivenon-performance履行不能2.Lateperformance3.Partialperformance4.Defectiveperformance5.AnticipatoryBreachandActualBreach6.MaterialBreachandnonmaterialBreachEffectofMaterialBreachAmaterialbreachoccurswhenthepromisor’sperformancefailstoreachthelevelofperformancethatthepromiseeisjustifiedinexpectingunderthecircumstances.Thepartywhoisinjuredbyamaterialbreachhastherighttowithholdhisownperformance.Heisdischargedfromfurtherobligationsunderthecontractandmaycancelit.Healsohastherighttosuefordamagesfortotalbreachofcontract.EffectofNonmaterialBreachBycontrast,whenthebreachisnotseriousenoughtobematerial,thenonbreachingpartymaysueforonlythosedamagescausedbytheparticularbreach.Inaddition,hedoesnothavetherighttocancelthecontract,althoughanonmaterialbreachcangivehimtherighttosuspendhisperformanceuntilthebreachisremedied.Oncethebreachisremedied,thenonbreachingpartymustgoaheadandrenderhisperformance,minusanydamagescausedbythebreach.DeterminingtheMaterialityoftheBreachThestandardfordeterminingmaterialityisaflexibleonethattakesintoaccountthefactsofeachindividualcase.Thekeyquestioniswhetherthebreachdeprivestheinjuredpartyofthebenefitsthathereasonablyexpected.AnticipatoryRepudiationOnetypeofbreachofcontractoccurswhenthepromisorindicatesbeforethetimeforhisperformancethatheisunwillingorunabletocarryoutthecontract.Thisiscalledanticipatoryrepudiationoranticipatorybreach.Anticipatorybreachgenerallyconstitutesamaterialbreachofcontractthatdischargesthepromiseefromallfurtherobligationunderthecontract.RemediesforBreachofContractContractremediesfocusontheeconomiclosscausedbybreachofcontract,notonthemoralobligationtoperformapromise.Theobjectiveofgrantingaremedyinacaseofbreachofcontractissimplytocompensatetheinjuredparty.TypesofContractRemedies1)Legalremedies(moneydamages)2)Equitableremedies(suchasSpecificPerformance)3)RestitutionItrequiresthedefendanttopaythevalueofthebenefitsthattheplaintiffhasconferredonhim.LegalRemedies(Damages)-LimitationonrecoveryofDamagesincontractCases1apartycanrecoverdamagesonlyforthoselossesthathecanprovewithreasonablecertainty.2Abreachingpartyisresponsibleforpayingonlythoselossesthatwereforeseeabletohimatthetimeofcontracting.3Plaintiffsinjuredbyabreachofcontracthavethedutytomitigate(avoidorminimize)damages.RemediesunderCISGTheremediesunderCISGaredrawnfrombothcommonlawandcivilsystem(1)avoidanceofthecontract;(2)seller’srighttoremedyorcure;(3)seller’sadditionaltimetoperform(4)pricereduction(5)moneydamages(6)specificperformanceAvoidanceofcontractInthecaseofadisputeunderCISG,onepartycanavoidthecontractonlyinthecaseofafundamentalbreachbytheotherparty.Seller’srighttoremedyAsellerwhohasdeliveredsomegoodstothebuyerpriortothedeliverydate,evenifthegoodsarenonconformingortheshipmentisnotcomplete,hasthechancetoremedytheproblemintheshipment,untilthetimeforperformanceexpires.Seller’sadditionaltimetoperformIntheeventthatthesellerhasfailedtodeliverthegoods,andthetimefortheirshipmentordeliveryhaspassed,thebuyermaygrantthesellerextratimetodoso.Duringthistime,thebuyermaynotavoidthecontractorresorttoabreachofcontractaction.MoneydamagesThemethodofmeasuringmoneydamagesdependsonwhetherthebuyerhasbeenabletopurchasesubstitutegoodsfromanothersupplier.Ifthebuyerdoespurchasesubstitutegoods,thebuyermayclaimdamagesifthesubstitutegoodscostmorethanthecontractprice.Ifthebuyerhasnotpurchasedsubstitutegoods,damagesaremeasuredbythedifferencebetweenthecontractpriceandthecurrentmarketprice.SpecificperformanceunderCISGAcourtmaygrantspecificperformanceonlyifallofthefollowingconditionsaremet:(1)thebuyerhadnotresortedtoanotherremedy,suchasavoidanceorpricereduction;(2)thesellerhadfailedtodeliver,orinthecaseofnonconforminggoods,thenonconformitywassoseriousthatitconstitutedafundamentalbreach;(3)thebuyergavetimelynoticetothesellerthatthegoodswerenonconforming;(4)thebuyerhadmadeatimelyrequestthatthesellerprovidesubstitutegoods.RemediesofanticipatorybreachRighttosuspendperformance:eitherpartymaysuspendperformanceunderacontractifonepartyrealizesthattheotherpartywillnotperformasubstantialpartofitsobligations.Therighttosuspendperformanceendswhentheotherpartyprovidesadequateassurancethatitwillperform.RighttoavoidanceAvoidanceofinstallmentcontractelementsofcontractbreach(China)thetwoelementsthatconstituteacontractbreach：（1）existenceofbreach，（2）noexcusesclassificationofcontractbreach1breachbyoneparty/breachbybothparties单方违约与双方违约。2materialbreach/non-materialbreach根本违约与非根本违约。3non-performance/incompleteperformance不履行，不完全履行。4anticipatorybreach/actualbreach预期违约与实际违约。commonremediesforcontractbreach（1）强制履行Spec