Analysis Of Changed Circumstances Principle Applicable In China

This thesis begins with the discussion on the case of contract disputes between the third viliger team of Yanzhuang vilige and Weiwu Road Subbranch of Bank of China, Zhengzhou. It focuses on the dispute's focal point about the basis for the Agreement's termination—changed circumstance principle, an important principle in execution of contracts. Before the launch of The Explainment of Some matters in Contract Law of People's Republic of China by the Supreme People's Court in 2009, judicial authority mainly carried out the principle of Fairness, True and Glauben when the changes of object condition in judicial practice makes the contract not be able to be realized. After the Changed Circumstence Principle appears in the judicial explanation, there is a principle for the application of laws when Changed Circumstence takes place. The financial crisis causes many cases about Changed Circumstence, which makes it more important to apply the Principle correctly. This thesis mainly talks about the application of the Changed Circumstence Principle in the form of case analysis.The first part shows the this case's basic fact as well as arbitral award, and analyzes the focal point of the dispute and points out the three opinions differing in the understanding of the effects of Agreement, whether it should be cancelled, and the basis for the termination of the agreement.The second part the theory core of this thesis. Based on the above introduction of the case, the author studies the Changed Circumstence Principle involved in the case further. First, it describes the meaning and status quo of the Changed Circumstence Principle by showing the legislature's and the judicial authority's attitudes. The former one has not confirmed the Principle so far, and the latter one often face this kind of cases, so it has unified the regulations and unveiled the judicial explaination; Next part talks about the Changed Circumstence Principle's component and its theory base. In the process of the application of this Principle the judge's discretion will be confined strictlly according to the analysis of component. What's more, it discusses the application of the Principle and its effect and the obligation to negotiate is quite critical. Only when it cannot reach agreement with the obligation to negotiate, can the contract be cancelled. Actually this is able to keep the trade steady to its most. Finally, it explains the difference among changed circumstence, vis major and business venture.The third part draws the conclusions from two aspects– the focus of the dispute and the application of the Changed Circumstence Principle.The case suits the standard of the Changed Circumstence Principle, and the contract should be cancelled in terms of the litigant's requirement. As for the Principle's application, the author proposes that it should be used carefully, and follow the related laws and rules of the Supreme People's Court strictly.