Abstract: Contract Explanation is a juridical behavior by nature, and it is an important component of contract law. Since the 3rd session of the 11th CNPR,our system of contract law has been built and developed, but there is still room for further development on the issue of contract explanation. This article starts with focusing on the emergence of contract explanation problems, explains the presumption, subject, and object of contract explanation, compares the contract explanation theories of the two system of law,probes the principles and development tendency of contract explanation, and thinks that standardization is not only the basic requirement of improving our legal system of contract explanation, but also the basic tendency of modern contract explanation development.