On The Application Of Clausula Rebus Sic Stantibus In Loan Contract Of Farmers

Clausula Rebus Sic Stantibus is the exception to the Pacta Sunt Servanda. Chinese civil law stipulates it as:After the founding of the contract, objective circumstances changed which could not have been foreseen by the parties in the conclusion of the contract, is non-force majeure, does not belong to the major changes of the commercial risk, continuing the contract will be unfair to one of the patties, or the purpose of the contract can not be achieved. On this basis, one of the parties requests for modification or rescission to the People’s Court, the people’s court shall determine whether to modify or rescind in accordance with the principle of fairness and combined with the actual circumstances of the case. Farmers loan contract is a contract in which set farmers as borrowers and banks as lenders, including Microfinance Contract and United reinsurance Contract. The core issue to be discussed in the article is:Could Clausula Rebus Sic Stantibus could be applied in farm loan contract and how to apply.The article begins with "Watermelon leavening agent events" in2011, through a field survey analysing the composition of funds of farmers who planting watermelon in-depth. In the survey we found that funding strand of farmers breaks after the event. And the farmers can not be due for repayment of bank loan. On this basis, the article aims to find a solution within the legal framework, in order to balance the interests of banks and farmers.The article discuss the issue with five parts. Firstly, analysing the nature and purpose of the the loan contract from a legal perspective, and pointed out that the significant value of the application of Clausula Rebus Sic Stantibus. Secondly, discussing the basis and difficulties of application of Clausula Rebus Sic Stantibus in the loan contract. Thirdly, discussing the referent path to choose based on the experiences of the judicial practice in Germany and the United States. Then summarizing the applicable approach from the judicial practice of the application of Clausula Rebus Sic Stantibus in China. Finally, discussing the specific approaches to the application of Clausula Rebus Sic Stantibus in loan contract based on the analysis above.