Breach of Contracts and Remedies

Abstract

In China, a heavily discussed term concerning the remedies for breach of contract is the "liability for breach" a concept that is claimed as a "product of China". There are two notable principles governing liability for breach that have fundamental impacts on Chinese contract law in the remedies. The first is the principle of liability. The second principle is the doctrine of liability imputation. In contract law theory, two basic approaches are commonly employed as the standards to impute civil liabilities, namely the fault approach and strict liability approach. Under the Contract Law, the continuing performance will primarily apply to monetary obligation, and also available to non-monetary obligation but subject to certain limitations. In China, the mitigation duty is viewed as a fault-based duty, under which the aggrieved party will be found at fault if it fails to take reasonable action to avoid further damages that could be avoided.Keywords: Chinese contract law; contract breach; fault approach; liability imputation; mitigation duty; monetary obligation; strict liability approach