Research On Changed Circumstances In Contract Performance

As an important principle of the performance of the contract, the principle of change ofcircumstances was highly recognized both in the common and civil law countries for itsemphasis on the characteristics of real justice. While Chinese contract law does not clearlydefined it. In today’s economic turmoil, the application of the principle of changed circumstanceshas greater value. The Supreme People’s Court takes this aged principle into the judicial systemby judicial interpretation, which gears principles of contract law to the international contractspecifications. In fact, this positive measure also address to the economic turmoil. This article isdivided into four parts, based on the research of the principle of changed circumstances; theauthor aims to make some practical suggestions to the future legislation.The first part summarizes the status of the principle of changed circumstances, as well asproblems that may exist. The second part is the comparative analysis of the principle of changedcircumstances. This part compares the origins and development of the civil and common law, italso introduces the main theoretical basis of the principle of changed circumstances. The thirdpart is the detailed analysis of principle, start with specific cases, the author pointed out the mainvalue of the change of circumstances under the new situation. The fourth part is some legislativerecommendations. The value of the situation changes under the new situation is more important,the legislation of our country is lagging behind in this respect. Contract Law of China has notexperienced the test of the financial crisis, thus lack of response to the terms of the financialcrisis. In fact, China’s contract law is static and inelastic. On this basis, this part focuses on howto improve our principle of circumstances change, and make some recommendations.