The fundamental breach of contract system in the CISG and its application in Chinese contract law

Abstract

Fundamental breach of contract system is of great importance in the CISG and it makes up for the worst situation that can be caused by breaking the contract. The content of the fundamental breach of the contract provides the reference basis for China’s national legislation. However, by comparing the CISG with Chinese Contract Law regarding the provisions of fundamental breach of contract, and analysing how it applies in different situations in forms of cases in China’s practice, it can be seen there are some issues occur in the application of fundamental breach system in China. Also, the imperfect application of fundamental breach of contract has brought great challenges to China’s international trade and judicial practice.