Manuchehr Tavassali Naini; Saeid Behzadipour
Volume 5, Issue 1 , January 0, , Pages 1-10
Abstract
Terms of contract, like a private law, are binding on the contracting parties and none of the parties to a contract is allowed to alter, modify or amend the terms of contract without the consent of the other party, even though the law maker or judge can not adjust the terms or conditions of the ...
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Terms of contract, like a private law, are binding on the contracting parties and none of the parties to a contract is allowed to alter, modify or amend the terms of contract without the consent of the other party, even though the law maker or judge can not adjust the terms or conditions of the concluded contract. However, it is possible that unpredictable events occur in the course of performing the contract in a way that require the terms of that contract to be adjusted or modified in accordance with new desire of the contracting parties or their economic needs. This situation can be observed more in international contracts. Sometimes unexpected and unpredictable events may result in economic imbalance of contract in a manner that full performance of the terms of contract may bring about windfall profit for one of the contracting parties and bankruptcy for the other party. For this reason, parties to such contracts usually prefer to regulate such a situation in advance. In this research while we studied issues around " Hardship" clause through a descriptive - analytical method, and despite the fact that contracted terms remain intact as obligatory, changes in circumstances which impact he balance of benefits support the loser to invite the other party to refresh talks. Otherwise he is allowed to make arrangement addressing cancellation under special conditions.
