| Abstract [eng] |
Research analyzes the Concept of the Fundamental Breach of Contract through Comparative Perspective. Research is based on the comparison of English, German, and French legal acts as well as case law. A more thorough analysis is given for the United Nations Convention on Contracts for the International Sale of Goods (1980), The Principles of European Contract Law, UNIDROIT Principles of International Commercial Contracts (2004), Draft Common Frame of Reference (DCFR). The first part of this research reviews the following prerequisites for the fundamental breach of contract: foreseeability, substantial deprivation, reasonable business man, strict compliance with the obligation, intentionality, loss of reliance, and disproportionate loss criterions. The second part of the research is analyzes remedial systems for the fundamental breach of contract, accentuating that the avoidance of the contract is the harshest remedy. A breach of the contract is fundamental, if the aggrieved party was substantially deprived from what she was entitled to expect or if the party in the breach did not perform in strict compliance with the contractual obligation. If the breach is fundamental, avoidance of the contract or substitute delivery of goods is possible. The amount of damages may depend on whether the breach was fundamental. Our research hypothesis was: ‘Even though international instruments attempt to harmonize and unify the concept of the fundamental breach of contract, the concept remains controversial. The concept can be defined only on a case-by-case basis through analyzing all prerequisites of the fundamental breach, the majority of which are based on subjectivity and a party’s own understanding (which is also influenced by economical, political, legal regulation and usages in the party’s country of residence).’ Our hypothesis was refuted, because our analysis revealed that the interpretation of prerequisites for the fundamental breach of contract and the implementation of remedies in different legal systems were found to be very similar. |
