| The developed legal systems in the world are based on the principles that the contract must be strictly observed. Contract Law of the Peoples Republic of China also regulates the same principle at Article 8 which provides that a contract by law makes the legally binding force on the parties. However, during the course of performance, the objective environment has changed significantly and unforeseen by the parties, and the rights and obligations of the parties have taken place fundamentally comparing the situation of contracting. Whether the parties should be bound by the validity of the contract or not? This question should be decided by the principle of changed circumstances. Countries of the civil law and common law system have a long history in the application of Changed Circumstances, have formed a complete theoretical system and accumulated a wealth of practical experience. The principle of Changed Circumstances is in the course of construction, and has certainly developed and perfected. It is importance to point out the necessity and the perfect of the principle from the legislative and judicial situation by investigating frustration of contract theory in German and Frustrations in the United Kingdom. In addition to the introduction and conclusion, the article is divided into four parts. The first part is an overview of the Change of Circumstances, including the concept and history. The second part covers the basic of legal conduct of German and Frustration of the United Kingdoms, including their elements, the kind of cases and legal results from the point of articles and cases. The third part is the status of application, including legislative and judicial aspects. The fourth part includes the recommendations in order to perfect the Change of Circumstances on the sound system on the basis of the above three parts. |
