Abstract

Although the existence of the breaching party's right of rescission is indirectly recognized in the practice of judicial adjudication, there has always been a great controversy among scholars as to whether the breaching party has the right of rescission and how it should exercise the right of rescission. The theoretical basis of the breaching party's right of rescission is mainly derived from the theory of efficiency breach in economics, but its legal applicability is still questionable. Article 580 of the Civil Code is a formal response to the breaching party's right of rescission, but does not explicitly stipulate that the breaching party has the right of rescission. The legitimacy of the breaching party's right of rescission still needs to be explored, and interpreting Article 580 as the breaching party has the right to apply for termination of the contract or the best way to solve the contract deadlock, and it is also the best response to maintaining the unity of the civil law system.

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