On The Judicial Application Of The Principle Of Situation Change

In a rapidly developing society,great changes have taken place in many areas such as social conditions and economics.The principle of "contracts must be strictly observed" is also faced with severe challenges.Correspondingly,situation changes have occurred and developed.in principle.The principle of change of circumstances has been mentioned many times in the formulation of the "Contract Law".Due to the many controversies in this principle,it has failed to make clear provisions.Subsequently,in the "Judicial Interpretation of Contract Law(2)" promulgated by China in 2009,the principle of situation change was formally introduced,and this principle was also applied accordingly.Since then,the Supreme People's Court has issued relevant requirements and procedural regulations in order to better guide people's courts at all levels in applying the principle of situation change.At the beginning of 2019,China made corresponding provisions on the principle of change of circumstances in the second review of the "Civil Code Contract(Draft)",and made changes in Article 323 that are different from the current judicial interpretation.The discussion provided conditions and also highlighted the necessity of studying the principles of situation change.This article studies the judicial application of the principle of situation change.After analyzing the current status of the judicial application of the principle of situation change in combination with related cases,it analyzes the relationship between the situation change and force majeure from the perspective of "the contract purpose cannot be achieved",and then combines the practical case.It clarifies situation changes and business risks,extracts the criteria for distinguishing between the two,and puts forward corresponding countermeasures and suggestions,so as to achieve the goal of maintaining fairness,justice,and balance of interests through the improvement of the principle of situation change.