The Effects of Financial Crises on the Binding Force of Contracts - Renegotiation, Rescission or Revision

This book is about one of the most controversial dilemmas of contract law: whether or not the unexpected change of circumstances due to the effects of financial crises may under certain conditions be taken into account.

Growing interconnectedness of global economies facilitates the spread of the effects of the financial crises. Financial crises cause severe difficulties for persons to fulfill their contractual obligations. During the financial crises, performance of contractual obligations may become excessively onerous or may cause an excessive loss for one of the contracting parties and consequently destroy the contractual equilibrium and legitimate the governmental interventions.

Uncomfortable economic climate leads to one of the most controversial dilemmas of the contract law: whether the binding force of the contract is absolute or not. In other words, unstable economic circumstances impose the need to devote special attention to review and perhaps to narrow the binding nature of a contract. Principle of good faith and fair dealing motivate a variety of theoretical bases in order to overcome the legal consequences of financial crises.

In this book, all these theoretical bases are analyzed with special focus on the available remedies, namely renegotiation, rescission or revision and the circumstances which enables the revocation of these remedies.

The book collects the 19 national reports and the general report originally presented in the session regarding the Effects of Financial Crises on the Binding Force of Contracts: Renegotiation, Rescission or Revision during the XIXth congress of the International Academy of Comparative Law, held in Vienna, July 2014.

Provides a comprehensive comparative overview on the legal consequences of global financial crises on the binding force of contracts Explores the problem from a variety of theoretical bases and concise analysis of the law of 19 jurisdiction Focuses on possible available remedies, namely renegotiation, rescission and revision

Klappentext

This book is about one of the most controversial dilemmas of contract law: whether or not the unexpected change of circumstances due to the effects of financial crises may under certain conditions be taken into account. Growing interconnectedness of global economies facilitates the spread of the effects of the financial crises. Financial crises cause severe difficulties for persons to fulfill their contractual obligations. During the financial crises, performance of contractual obligations may become excessively onerous or may cause an excessive loss for one of the contracting parties and consequently destroy the contractual equilibrium and legitimate the governmental interventions. Uncomfortable economic climate leads to one of the most controversial dilemmas of the contract law: whether the binding force of the contract is absolute or not. In other words, unstable economic circumstances impose the need to devote special attention to review and perhaps to narrow the binding nature of a contract. Principle of good faith and fair dealing motivate a variety of theoretical bases in order to overcome the legal consequences of financial crises. In this book, all these theoretical bases are analyzed with special focus on the available remedies, namely renegotiation, rescission or revision and the circumstances which enables the revocation of these remedies. The book collects the 19 national reports and the general report originally presented in the session regarding the Effects of Financial Crises on the Binding Force of Contracts: Renegotiation, Rescission or Revision during the XIXth congress of the International Academy of Comparative Law, held in Vienna, July 2014.

Inhalt

Part I General Report.- 1 General Report on the Effects of Financial Crises on the Binding Force of Contracts: Renegotiation, Rescission or Revision; Rona Serozan.- Part II National Reports.- 2 From Crisis to Crisis: Weakness of Contracts in Argentina; Julio César Rivera.- 3 Keeping the Balance: The Effects of Financial Crises on Contracts under Brazilian Law; Anderson Schreiber.- 4 Les effets exercés par les crises financières sur la force obligatoire des contrats: certitudes et incertitudes du droit québécois en matière d'imprévision; Élise Charpentier and Nathalie Vézina.- 5 Can Financial Crisis Lead to the Application of the Institute of Changed Circumstances under Croatian Law?; Maja Bukovac Puvaa, Gabrijela Miheli and Iva Tuhtan Grgi.- 6 Elimination of the Impacts of Financial Crisis on Legal Relationships according to Czech Private Law; Marketa Selucká.- 7 Financial Crises and Danish Contract Law: No Room for Hardship; Mads Bryde Andersen and Joseph Lookofsky.- 8 Crises financières et contrats: le droit français refuse la révision d'un contrat devenu déséquilibré; Rémy Cabrillac.- 9 Financial Turmoil as a Change of Circumstances under Greek Contract Law; Nikolaos A. Davrados.- 10 All Roads Lead to Rome: The Multiple Grounds under Italian Law to Challenge a Contract Due to Supervening Changes of Circumstances; Marco Torsello.- 11 Effects of a Bubble Economy on the Binding Force of Contracts:The 1990s Experience of Japan and Its Implications; Shugo Kitayama.- 12 The Effects of Crises on the Binding Force of Contracts Polish Solutions; Wojciech Robaczyski.- 13 Discussing the (Ab)Normality of Financial Crises as a Relevant Change of Circumstances Under Portuguese Law; Manuel Carneiro da Frada and Mariana Fontes da Costa.- 14 L'imprévision dans le Nouveau Code Civil roumain enfanté par la crise économique mondiale; Dumitru Dobrev and Marilena Uliescu.- 15 The Russian Federation Legislation on the Effects of Financial Crises on the Binding Force of Contracts: Renegotiation, Rescission or Revision; Natalia Georgievna Doronina and Natalia Guennadievna Semilyutina.- 16 The Effects of the Global Financial Crisis on the Binding Force of Contracts: A Focus on Disputes over Structured Notes in Taiwan; Chang-hsien Tsai.- 17 Certainty over Clemency: English Contract Law in the Face of Financial Crisis; Horace Yeung and Flora Huang.- 18 Financial Crisis and the Remedy of Rescission in the United States; Aditi Bagchi.- 19 The Adaptation of the Contract in Turkish Law; Baak Baysal.- Index.