A Study On The Application Of The Rule Of Changes In Circumstances

The doctrine of change of circumstances is such a doctrine that contains following factors:the foundation or the circumstances of the contract have been majoy changed after the contract is in force but not executed,and these changes which make it difficult to perfrom the contract or result in frustration of the contracct are not attributable to the contracting parties; if continue to perform the contract will make one party of the contract in an adverse position and lead to the significant lost of economic interests or make there no meanings to the part;to avoid unfair consequences, the party may request change or rescind the contract from contract obligation and does not therefore bear the liability for breach.This doctrine is not in the "contract law" because the China’s legislative thought it is difficult to make a scientic definition and to draw a line with the theory of business risk.It had changed because the26th clause of the "interpretation II of contract law " is provision of the doctrine of change of circumstances.In this paper,I will analysis the26th clause and compare the doctrine of change of circumstances and related concets by analysising the case of construction contract dispute of The Wuhan city road construction headquarters and the the second engineering company of the Eighteen Bureau of China Railway Group.Then discuss the the basic concepts, construction conditions,effects and legal values of the doctrine of change of circumstances.And put suggestions on how to perfect the doctrine.