Change of Circumstances under CISG 24 March 2017 Rostislav Pekař

Overview CISG does not expressly mention the issue of hardship or change of circumstances. Possible solutions to CISG’s silence: Application of Art. 79 CISG per analogiam Gap-filling function of Art. 7(2) CISG: Application of General Principles on which CISG is based; Application of Domestic Law applicable by virtue of conflict of law rules.

Application of Art. 79 CISG per analogiam

Gap-Filling function of Art. 7 CISG

Supplemental function of the UNIDROIT Principles of International Commercial Contracts

UNIDROIT Principles: Pacta Sunt Servanda

UNIDROIT Principles: Definition of Hardship

UNIDROIT Principles : Effects of Hardship

Case-law on Hardship/Change of Circumstances under CISG and UNIDROIT Principles In 1996, a CIETAC arbitral tribunal held that although the market price of the goods in question had increased two times between the conclusion of the contract and the date of shipment, the seller may not rely on Art. 79 CISG and is required to supply the goods for the originally agreed price. In 1997, a German Higher Regional Court did not consider a triplication of market price to render the contract commercially unreasonable and refused to apply Art. 79 CISG. In 2009, the Belgian Supreme Court, applying the UNIDROIT principles, considered an unforeseeable 70% increase of the market price to constitute a fundamental disruption of the contractual equilibrium and granted the seller the right to request renegotiations of the price.

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