Difficult Circumstances Rule In The International Engineering Contract

Under Pacta Sunt Servanda, if a contract has been made, both parties should perform their responsibilities according to the contract. However, some events will be occurred which beyond anticipate and control after the conclusion of the contract. It will make the performance unexpected burdensomely or impossibly, and affect the equilibrium of the contract. Therefore, there are some doctrines and principles such as Frustration, Clausula rebus sic stamitbus in various legal systems. The Hardship Clause stipulated in the Principle of International Commercial Contract, which is established by International Institute for the Unification of Private Law, is the most representative principle.Hardship Clause has a practical value, especially in international engineering contract. Although there are some traditions and models for international engineering contract, the events which beyond anticipate and control could not be specified in the international engineering contract, and the disposal method could not be confirmed. It is not benefit for execution of the contract, and will affect the interests of both parties. The application of Hardship Clause in the international engineering contract could remedy the insufficiency of related matters, and provide a good example for dispute settlement.There are three sections in the article. The first section is about the legal source of Hardship Clause; the second section is about description of Hardship Clause in Principles of International Commercial Contracts; the third section is about the application of Hardship Clause in international engineering contract.