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On the principle of changed circumstances in contract performance
Abstract: The principle of changed circumstances is an important principle related to contract performance. As early as 1950s, Shi Shangkuan, a scholar in Taiwan Province, systematically expounded the nature, historical evolution, theoretical basis and applicable conditions of the principle of changed circumstances. Since the reform and opening up, a large number of economic contracts have appeared, and the social situation has become increasingly complicated. During the performance of the contract, major changes occur frequently. If we continue to perform the contract according to the provisions of the original contract, it will lead to the obviously unfair of the contract, which will make the performance of the contract inconsistent with the agreement of the parties when concluding the contract, and will eventually damage the transaction security. Therefore, the principle of changed circumstances is becoming more and more important in the performance of the contract.
Keywords: situation change, contract performance, contract change and contract termination
According to relevant research, as early as the 12~ 13 century, the annotation law school put forward the "situation invariable clause" in its school work "Notes on the Steps of Youdifa", and pointed out that it was a hypothetical implied clause, that is, once the situation that was the basis of the contract no longer existed, it should be allowed to change or terminate the contract. The "changed circumstances clause" here can be regarded as the origin of the modern changed circumstances principle.
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References:
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Secondary citation:
Shi Shangkuan. On Creditor's Rights [M] Taipei: Taiwan Province Rong Tai Publishing House, 1954.
[2] Selected Cases of People's Courts [Z] Beijing: People's Court Press, 1993.
[3] Xu Guodong. Interpretation of the Basic Principles of Civil Law-Overcoming the Limitations of Statutory Law [M] Beijing: China University of Political Science and Law Press, 1992.