Determining Standard Of Changed Circumstance

Principle of changed circumstance(clausal rebus sic stantibus) is referred as after the contract is established and before it finishes the implementation, the objective factors which is basic to the contract have fundamental changes that are not caused by one or two parties, with the result of very difficult implementation of the contract. Under such circumstance, the two parties'original balanced benefits shall be broken. In light of the fairness principle, the party which is affected by the influence has the right to alter or release of the contract. System of changed circumstance is important to keep the fair trade action.If adopting the system of changed circumstance into our national Contract Law was ever and is still one of the core issues which are debated. What more, the determining standard of changed circumstance is the focus and difficulty of the above issue. It has been divided into 2 levels in this essay to analyze the standard, on which the changed circumstance is categorized on. Comparing to related provisions of the Contract Law, the application of different types of the changed circumstance is explained, and finally the definition of the system of changed circumstance is given and the various types are on the list.There are 4 chapters in all. The first chapter is to generalize the related conceptions and applicable conditions of changed circumstance, and further to raise questions to legislative situation and debates.The second chapter is to analyze based on the level of the relationship between changed circumstance and determining standard of risk which should be reasonably taken, making a conclusion that whether the purpose of the contract can be realized as the determining standard.The third chapter is a generalization of legislative models of categorization of changed circumstance in different countries, according to determining standard of various situation of changed circumstance, and to categorize the changed circumstance, comparing to related provisions in the national Contract Law.The forth chapter is the conclusion of which the specific contents of the system of changed circumstance that should be established in China are discussed. Further more, this chapter is to definite the categories of changed circumstance which should be determined by the system.