Whether the defaulting party has the right to rescind the contract when it does not have the contractual and statutory conditions of rescission, and doesn't achieve agreement to end the contract with the observant party is controversial in the academic and practical circles. However, based on the principle of equality of contract subjects, the principle of freedom of contract, the principle of justice of contract, the efficiency value of contract and the requirements of saving resource, the defaulting party is entitled to have the right to terminate the contract. However, based on the principle of adherence to the contract, the defaulting party's right to terminate the contract should be strictly limited, due to the relative freedom of law and encouraging trade principles. If contract subject can not be replaced or the subject does not have an alternative reality as well as the loss is difficult to calculate, the defaulting party should not be given the right to terminate the contract. Once the right to terminate the contract is given to the defaulting party, they shall compensate the observant party's performance interest, including the difference between the agreed price and the price of fulfilling the contract substitution and the cost to fulfill the contract and so on.