Author(s)

Yihao Chen

Corresponding Author

Yihao Chen

Abstract

If a party violates the reasonable trust of the counterparty and improperly breaks off the negotiation, the party shall compensate the counterparty for the losses suffered as a result. Whether the damage liability for interruption of the negotiation constitutes requires the judge to make a fair ruling based on the party’s contracting stage and the constituent elements of the liability for reliance, and considering relevant factors. The scope of liability for breaking off negotiation is usually limited to the interest of reliance, which needs to be determined by measuring the degree of fault of the party and the degree of trust of the counterparty on a reasonable basis. In the case where the negligence of the party has caused the counterparty to invest a large amount of trust costs, and the contract has become mature, the court may consider giving the counterparty compensation for the performance of the benefits. In exceptional circumstances where the party maliciously violates the negotiation obligation, the reliance damage can even exceed the performance interest, with the purpose of restoring the original situation.

Keywords

Breaks off negotiations, Trust protection, Contacting freedom, Damages