Abstract
On 8 May 2020, the National People’s Congress of China passed the Chinese Civil Code by incorporating the Civil Law, the Law on Property Rights, Collateral Law, Contract Law, and Tort Law. The compensation for damages in the Civil Code of China follows the regulation system of the contract law. However, it is worth noting that the Civil Code tried to resolve the legislative imperfection and uncertainty of the contract law while maintaining the legislative attitude of actively accepting international contract laws. The Civil Code of china stipulates the most representative type of remedy for breach of contract, the provisions on compensation for damages due for breach of contract, and the provisions on damages due for tort, but there are no general provisions on compensation. The Civil Code did not establish a general clause on compensation for damages, and it deals with the liability of damages within each responsibility system. This paper analyzes theories and recent precedents on the main contents, specifically the concept of damages, type of damages, scope of damages, the legal standard for calculating damages on compensation for damages caused by a breach of contract in the Chinese Civil Code. Besides, this paper aims to enhance the legal predictability of damages due to breach of contract and infer legal significance when the Chinese Civil Code becomes an applicable law in litigation and arbitration.
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