Although the existence of the breaching party's right of rescission is indirectly recognized in the practice of judicial adjudication, there has always been a great controversy among scholars as to whether the breaching party has the right of rescission and how it should exercise the right of rescission. The theoretical basis of the breaching party's right of rescission is mainly derived from the theory of efficiency breach in economics, but its legal applicability is still questionable. Article 580 of the Civil Code is a formal response to the breaching party's right of rescission, but does not explicitly stipulate that the breaching party has the right of rescission. The legitimacy of the breaching party's right of rescission still needs to be explored, and interpreting Article 580 as the breaching party has the right to apply for termination of the contract or the best way to solve the contract deadlock, and it is also the best response to maintaining the unity of the civil law system.

Zhou Zhou. Theoretical Analysis and Application Optimization of the Breaching Party's Right of Rescission. Academic Journal of Humanities & Social Sciences (2022) Vol. 5, Issue 17: 44-50. https://doi.org/10.25236/AJHSS.2022.051707.

[1] Liming Wang. On the application of the breaching party for termination in the contract deadlock [J]. Law Review, 2020, 38(01):26-38. 

[2] Ye Tian. Revaluation of the path to break the contract deadlock under the background of the Civil Code [J]. Social Sciences of Chinese Universities, 2021(04):101-113+159.

[3] Songlun Zhang. Recertification and reflection on the "right of rescission of the breaching party"[J]. Qiushi Journal, 2022, 49(05):122-131.

[4] Shiyuan Han. Rescission of continuing contracts: rescission by the breaching party or rescission for major reasons [J]. China and Foreign Law, 2020, 32(01):104-127.

[5] Zhengxin Huo. A comparative method of efficiency default [J]. Comparative Law Research,2011 (01):55-70.

[6] Peng Qi. Legal Considerations on the Introduction of Efficiency Breach System in China's Contract Legislation [J]. Journal of Xi'an Jiaotong University (Social Sciences),2015,35(04):125-130.

[7] Jianyuan Cui. Legislative suggestions for improving the contract termination system [J]. Journal of Wuhan University (Philosophy and Social Sciences), 2018, 71(02):83-90.

[8] Shiyuan Han. The modernization of contract law: why and how [J]. Rule of Law Research, 2019(06):14-26.

[9] Rui Cai. Absorption or Abandonment: Reflections on the Right of Contract Rescission of the Breaching Party——An Empirical Study Based on Relevant Adjudication Cases [J]. Modern Jurisprudence, 2019, 41(03):152-168.

[10] Liangguo Sun, Pingji Shan. Critique of Efficiency Default Theory [J]. Contemporary Law, 2010, 24(06):72-78.

[11] Wenjun Wang. Continuation contract and its type theory [J]. North Methodology, 2013, 7(05):77-83.