Damages China Contract Law Article 113: the amount of compensation for losses shall be equal to the losses caused by the breach of contract, including the interests receivable after the performance of the contract provided not exceeding the probable losses caused by the breach of contract which has been foreseen or ought to be foreseen when the party in breach concludes the contract. Article 119: the innocent party has the duty to take proper measure to prevent from the enlargement of losses; otherwise, the party may not claim any compensation as to the enlarged losses. Avoidance of Installment Contract 1) if fundamental breach occurs to a particular installment, then the other party may declare the contract avoided with respect to that installment. 2) if the breach of one installment gives a party good grounds to believe that a fundamental breach of later installments will occur, then those later installments may be anticipatorily avoided. 3) if the installments are interdependent, a fundamental breach of one installment will allow a party to avoid the entire contract. II Anticipatory Breach of Contract and Exceptio non Adimpleti Contractus in Civil Law A) Anticipatory Breach 预期违约 1) concept: one contracting party may inform the other party, before the time fixed for performance under the contract, that he will not perform his obligations under contract. 2) remedy: the other party thus entitled to terminate performance immediately and claim damages at the date of the acceptance of the breach. He can also select to affirm the contract and demand performance at the time stipulated in the contract. B) Exceptio non Adimpleti Contractus 不安抗辩权 1) concept: one party is entitled to reject performance unless the other party performs his obligations according to the contract. 2) German Civil Code: if one party to a bilateral contract is obligated to give first, he may reject his obligation in the case where the other party’s property becomes so obviously less that his right
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