Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Imbalance in Long-Term Commercial Contracts

Imbalance in Long-Term Commercial Contracts This paper illustrates that the balance between the principle of pacta sunt servanda and the situations where, in extraordinary circumstances, a party should be released from their contractual obligations is delicate. Where the answer cannot be clearly derived from the contract, the outcome depends on one of the many different national doctrines on how to deal with unforeseen events and on the subjective opinions of judges or arbitrators about what is fair and what best accords with the contract and the rules of law of the jurisdiction in question. It is difficult to deduce international trends from the laws and the decisions in actual cases, as the proper way to deal with these questions cannot be encapsulated in a precise formula. Complete harmonisation cannot be achieved and it is therefore recommended that parties should include hardship clauses or the like in their contracts, but even this is unlikely to solve all the problems. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png European Review of Contract Law de Gruyter

Imbalance in Long-Term Commercial Contracts

Edlund, Hans Henrik
European Review of Contract Law , Volume 5 (4) – Nov 1, 2009
Download PDF
19 pages

Loading next page...
 
/lp/de-gruyter/imbalance-in-long-term-commercial-contracts-sucOlrmVfd

References

References for this paper are not available at this time. We will be adding them shortly, thank you for your patience.

Publisher
de Gruyter
Copyright
© Copyright 2009 by De Gruyter Rechtswissenschaften Verlags-GmbH, Berlin, Germany
Subject
Articles
ISSN
1614-9920
eISSN
1614-9939
DOI
10.1515/ERCL.2009.427
Publisher site
See Article on Publisher Site

Abstract

This paper illustrates that the balance between the principle of pacta sunt servanda and the situations where, in extraordinary circumstances, a party should be released from their contractual obligations is delicate. Where the answer cannot be clearly derived from the contract, the outcome depends on one of the many different national doctrines on how to deal with unforeseen events and on the subjective opinions of judges or arbitrators about what is fair and what best accords with the contract and the rules of law of the jurisdiction in question. It is difficult to deduce international trends from the laws and the decisions in actual cases, as the proper way to deal with these questions cannot be encapsulated in a precise formula. Complete harmonisation cannot be achieved and it is therefore recommended that parties should include hardship clauses or the like in their contracts, but even this is unlikely to solve all the problems.

Journal

European Review of Contract Law – de Gruyter

Published: Nov 1, 2009

There are no references for this article.