Unexpected Circumstances in European Contract Law

A comparative exploration of whether unexpected circumstances can 'open up' contracts.

Jurisdictions all over Europe have to deal with the question of whether or not unexpected circumstances can lead to adaptation, termination or renegotiation of existing contracts. This comparative study explores the possibility of classifying jurisdictions as 'open' or 'closed' in this regard.The recent financial crisis has questioned whether existing contracts may be adapted, terminated or renegotiated as a result of unexpected circumstances. The question is not a new one. In medieval times the notion of clausula rebus sic stantibus was developed to cope with such situations, and Germany introduced the theory of Wegfall der Geschäftsgrundlage. In England, the Coronation cases provided one possible answer. This comparative study explores the possibility of classifying jurisdictions as 'open' or 'closed' in this regard.