1. Change of Circumstances under CISG
24 March 2017
Rostislav Pekař

2. 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.

3. Application of Art. 79 CISG per analogiam

4. Gap-Filling function of Art. 7 CISG

5. Supplemental function of the UNIDROIT Principles of International Commercial Contracts

6. UNIDROIT Principles: Pacta Sunt Servanda

7. UNIDROIT Principles: Definition of Hardship

8. UNIDROIT Principles : Effects of Hardship

9. 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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