Modern Social Science Research

The case of Xin Yu v. Feng Yumei, the first case in which the defaulting party was given the right to rescind, and whether Article 580(2) of the Civil Code gives the defaulting party the right to rescind the contract, has aroused widespread concern in both theoretical and practical circles. The defaulting party has the right to propose to the Peoples Court to rescind the contract, and it is up to the specific discretion of the Peoples Court whether to constitute a contract impasse and whether to support the defaulting partys request to rescind the contract. For the specific legal application issues such as the effective connection between Article 580 paragraph 2 of the Civil Code and Article 48 of the Ninth Civil Code, it is still necessary for the relevant judicial interpretation to be further improved.

Defaulting partys right to rescind contract; Contract impasse; Judicial rescission