Study of Disgorgement Interests Compensation in Contractual Liability

The interests of traditional damages consist of expectation interests, reliance interests and restitution interests, which are based on the notion of damages of the injured. In practice, disgorgement interests have been recognized in the some countries. The basis of granting disgorgement is that this interest can accomplish the balance of contract and the purpose of contract and correlative policy, because contract law inevitably has the function of prohibition and deterrence. The damages of disgorgement interests have the peculiar elements, which emphasize the causation between the gain of breaching party and breach, and emphasize that expectation interests can’t satisfy the purpose of contract and contract law. Traditional mode of damages can’t explain the practice that should grant disgorgement interests. Of course, the disgorgement interests is complementary to the damages-based rule.