Research On Legal Risk Of Price Clause Of International Contract Of Commodity

The price clause is one of most fundamental clauses in an international contract of commodity. The price clause of international contract of commodity is always in a huge legal risk either due to such Irregular behaviors as non-standardized signing and performance of price term of a contract, or due to such external events as uncertain commodity prices on rapidly changed international marketplace, and fluctuated exchange rates. However, at the present stage, whether it is from academic theory, or from judicial practice of international trade, there is still not a unified widely accepted understanding on what the legal risk of price terms of the contract is and how to solve the problem. The author believes that legal risks of price clause of international trade contract refers to the possibility of taking adverse consequences, which was caused by Irregular behaviors such as non-standard singing and performance of the price clauses of contracts or external events. The purpose of this study is to make a comprehensive and profound analysis on the definition, forms, causes, characteristics and classification of the legal risks. And on of basis of the above analysis, put forward some effective countermeasures against such legal risks. First, Literature Analysis Method is adopted, by a large number of reading, a comprehensive understanding on research status of such risks would be acquired. Then on the basis of borrowing useful theories gained from the above reading, The Empirical Analysis is introduced in order to give a detailed description on definition, forms, reasons, characteristics and classifications of the legal risks, then countermeasures to solve such risks. This study can not only improve the understanding of legal risks of price clause of international contract of commodity, but also provide an effective way to prevent such legal risks from becoming legal crisis by put forward feasible preventive measures for reference.