Principle Of Changed Circumstances Applicable In The Real Estate Sale Contract Dispute

The presale of commercial housing is a method of distribution to sell a house in advance of construction. With the development of the socialistic market economic system, the presale of commercial housing is playing a more important role. The function of the presale of commercial housing is very important: by the method not only can the land agents get advance payment of subscriber to devote a great deal of fund to empolder real estate and quicken the process of retracting the capital to ease the pressure of debit and credit, but also it can impel the distribution of housing greatly and partly transfer the risk of real estate market. At the same time, it also help subscribers get benefits of the expecting right in advance. Consequently the presale of commercial housing can accelerate the flowage of commercial housing and facilitate the development of the real estate market. Therefore in recent years the business of commercial housing adopts the way of presale. But we also know the presale of commercial housing is different to the trade of existing housing: when the parties discuss the terms, the object does not exist. From the subscription of contract to the absolute implement of contract there is a long period. In this period the market price of commercial housing probably waves greatly or the contract cannot be carried out owing to significant rise or fall of the price of original materials and lands or the changes of the national law and policy or the intervention of the government administration or so on. This wave and no implement cannot boil down to either party in the contract. So at this time if they must absolutely carry out the contract according to the contract, it would cause one party's great loss and be unfair to the party. Therefore, the principle of alteration in different situations will come out.The principle of alteration in different situations is an important principle in contact law of every country and also is a law system to deal with the difficulty of fulfilling the contract because of the economic situation. Once the contract is established effectively, it should be performed according to the principle that the contract should be strictly complied. But sometimes the principle of alteration in different situations should be the exception according to the principle of the honest reputation. The principle of alteration in different situationsThe principle of alteration in different situations is the embodiment of fair principle and honest reputation principle in the contract realm. It establishes the purpose to re-adjust the rights and obligation of the parties and eliminate the contract's unfair result owing to the situation's great changes. Finally it will fulfill he candor of the civil law and promote the stable development of the economic order.Surveying the world, we can find that though some countries belonging to the continental law keep careful attitude to the principle of alteration in different situations they admit the principle of alteration in different situations in theories and judicatory practice. While in the countries belonging to the Anglo-American law system the principle of "the contract ends up in nothing" adopted is different in approach but equally satisfactory in result with the principle of alteration in different situations. It is a pity that our contract law in 1999 does not make a clear provision to the principle of alteration in different situationsCombining the characteristic of the principle of alteration in different situations and the specialty of the contract about the presale of commercial housing and comparing with the instance in western countries, this article tries to give a particular detail that in our countries how to apply the principle of alteration in different situations in the contract dispute about the presale of commercial housingThe article includes five parts totally. The first part mainly discusses the concept, the development history, the related foreign lawmaking and its current condition of the our country about the principle of alteration in different situations and points out that it is a pity that it is a pity that our contract law in 1999 does not make a clear provision to the principle of alteration in different situations. Combining the characteristic of the contract about the presale of commercial housing the second part detailedly in six treatises discusses the necessity and the possibility of adopting the principle of alteration in different situations in the contract dispute about the presale of commercial housing from the view of the theories and practice. The third part elaborated the seven conditions of applying the principle of alteration in different situations in the contract dispute about the presale of commercial housing and analyze the difference among the principle of alteration in different situations, matter alteration, force majeure and business risks. The four part specially analyzes the effect of applying the principle of alteration in different situations in the contract dispute about thepresale of commercial housing. From the above analysis, the article give some advice how to consummate the principle of alteration in different situations in the contract dispute about the presale of commercial housing and the writer put forward that our contract law should make a clear provision to the principle of alteration in different situation and perfect the contract law system.