An Analysis Of The Principle Of Change Of Situation Through Similar Typical Cases

The rapid development of the economy and society and the ever-changing market transactions have made contract disputes intensify in recent years.Under the financial crisis,a large number of disputes have occurred due to the influence of many factors such as product transaction and capital flow between enterprises due to the sharp fluctuations in raw material prices,changes in market demand relationships,and insufficient liquid funds.In the context of the booming real estate market,skyrocketing housing prices,and the introduction of a series of effective policies by government departments at all levels to macro-control the real estate market and stabilize housing prices,more and more parties are proposing in the lawsuit to apply the principle of changing the situation to change or terminate the contract.Request.How to properly apply the principle of changing the situation has become a hot and difficult issue in the current civil and commercial trials.The Civil Code of the People’s Republic of China(Draft),considered and adopted at the 15 th Meeting of the 13 th Session of the Standing Committee of the National People’s Congress on December 28,2019,completes the principle of change of situation and has important guiding significance for the determination and application of change of situation.Judicial practice is often faced with the problem of distinguishing situation changes from commercial risks and force majeure.Chinese courts often determine whether a change in an objective situation constitutes a situation by judging the parties’ ability to foresee,whether the contract foundation is shaken,and whether the continued performance of the contract is obviously unfair.change.However,the courts in different regions have not yet formed a completely unified opinion on the determination of the situation change,and there are still some problems and difficulties in judicial practice.We have studied thousands of cases published by China Judgment Documents Network as samples,and selected three typical cases for highlighting.Case A large group of corporations,Zong Xijin and Huaibei Shenghuo Mining Co.,Ltd.,Huaibei Shenghuo Real Estate Development Co.,Ltd.,Guoyang Shenghuo Real Estate Development Co.,Ltd.,in the case of equity transfer disputes.After the extension of the contract,the government issued relevant policies affecting the purpose of the contract Realized,so Shenghuo Mining Co.,Ltd.believes that the situation has changed without having to assume the responsibility of delaying the performance of the contract;Case 2 China Electric Power Engineering Consulting Group Zhongnan Electric Power Design Institute Co.,Ltd.v.Tenglong Aromatics(Zhangzhou)Co.,Ltd.construction project dispute due to contract performance In the process,the government issued related policies that resulted in the contract being in fact unfulfillable.Tenglong Aromatics considered the situation to be an unforeseen force majeure,and Central South Design Institute considered it to constitute an unforeseen change of circumstances.Case Three: Xinyu Company v.Feng Yumei’s shop sales contract dispute.Times Square’s poor management results in losses.Xinyu claims to change the situation and intends to terminate the contract,while Feng believes that the situation involved is a business risk that Xinyu can foresee.In this paper,the issues concerning the determination of the situation change involved in the above-mentioned cases,such as whether the delayed performance of the contract can be applied to the principle of situation change,the parties’ ability to foresee,the relationship between the situation change and business risks,force majeure and other disputes,were combined with other samples for common extraction.In view of the above problems,we believe that the principle of changing the situation is determined: first of all,it is necessary to determine whether the circumstances involved in the case meet the time requirements,and the change of situation exists only in the process of performing the contract;Whether the occurrence is within the foreseeable scope of the parties,and if the parties have the ability to foresee this,consider whether it is normal business risk;again,the interests of both parties should be weighed rationally,and if the continued performance of the contract causes obvious unfair consequences for one party,then Consideration may be given to changing circumstances.It is determined that the change of situation can not only judge whether the change of objective situation constitutes commercial risk and force majeure.A comprehensive judgment should be made in combination with the above requirements,and a case judgment made by fully considering the parties’ foresight and balance of interests can meet the expectations of the parties.