On Understanding And Application Of The Principle Of Substantial Change Of Circumstances

On Understanding and Application of the Principle of Substantial Change of CircumstancesHow to apply the principle of substantial change of circumstances is an inevitable issue of the contract law practice in every jurisdiction. In 2009, the Supreme People's Court put in place the second crucial judicial interpretation concerning to the contract law,within which the principle of substantial change of circumstances is definitely listed as a specific legal institution applicable by the courts.And the issue came to the table.The principle of substantial change of circumstances is an item for the purpose of handling the contract dispute fairly, sharing the assignment risks between the parties, and maintaining the health of the transaction order. The principle of substantial change of circumstances gives one of the parties the rights of asking the count to change or terminate the original contract, when some basic circumstances of the contract have changed after the contract established effectively, and caused the imbalance of rights and obligations.The applying of the principle begins with the definition of the substantial change of circumstances. By observing the definition in domestic and foreign articles, we can get a certain conclusion about the principle of substantial change of circumstances. That is a common understanding over the words. And also through observing the typical definitions and theories about the principle of substantial change of circumstances, we can get an overview of the achievements of the observers.There are many precedents and case materials available on the judicial application of this principle home and abroad.What's more,our people's courts in different levels have formed abundant judgments on the application of this principle during the past 20 years. While the concrete meaning of the circumstances and the substantial change should be summarized from the certain judgment.To sum up, the principle of substantial change of circumstances is a very important principle of law. It plays a significant role in balancing the rights and obligations between two parties effectively. But it is also easily abused, so we need to grasp the requirements and the mechanisms of the application of the principle.