The Application Of The Principle Of The Changed Cirumstances In The Housing Sales Contract

The principle of the Changed Circumstances is the "last resort " to maintain fairness, justice and good faith in the field of Contract Law. Interpretations The Supreme People’s Court of Certain Issues concerning The Application of The Contract Law of The People’s Republic of China (Part Two) which released in 2009 determine the principle as a clause for the first time. The principle of the Changed Circumstances is the breakthrough of the contracts relativity, should be applied with care.In this paper, the breach of contracts due to the principle of the Changed Circumstances is analyzed in categories. Since 2015, house price have fallen across many cities which make the owner who recently purchased a new house claimed to receive compensation or return the house to developers. As for the strict housing credit policy, it should be analyzed reasonably according to the rules in business contracts of housing purchases and sales. Meanwhile, the management of the local government’s daily behavior also brings about many disputes. Besides, the parties will facing how to distinguish the Changed Circumstances, force majeure and commercial risk when they seeking judicial approach to solve their problems. The judicial departments are well-advised to take several elements affected by the changed circumstances, such as the purpose and foundation of the contracts, benefit distribution among clients, into sufficient consideration when it dealt with those cases. The law courts would be given the right to decide in change or dissolution of the contracts base on the clients’request.The paper is divided into three different chapters, Chapter One:Introduction of the principle of the Changed Circumstances, Chapter Two:Practice of the changed circumstances in specific situation, Chapter Three:The applied consequences of the changed circumstances.