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Hardship Clause
Hardship clause is a clause in a contract that is intended to cover cases in which unforeseen events occur that fundamentally alter the equilibrium of a contract resulting in an excessive burden being placed on one of the parties involved. Hardship clauses typically recognize that parties must perform their contractual obligations even if events have rendered performance more onerous than would reasonably have been anticipated at the time of the conclusion of the contract. However, if continued performance has become excessively burdensome because of an event beyond a party's reasonable control that it could not reasonably have been expected to have taken into account, the clause can obligate the parties to negotiate alternative contractual terms to allow for the consequences of the event reasonably. Relation to ''force majeure'' The hardship clause is sometimes used in relation to ''force majeure'', particularly because they share similar features and they both cater to situati ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Contract
A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more parties. A contract typically involves consent to transfer of goods, services, money, or promise to transfer any of those at a future date. The activities and intentions of the parties entering into a contract may be referred to as contracting. In the event of a breach of contract, the injured party may seek judicial remedies such as damages or equitable remedies such as specific performance or rescission. A binding agreement between actors in international law is known as a treaty. Contract law, the field of the law of obligations concerned with contracts, is based on the principle that agreements must be honoured. Like other areas of private law, contract law varies between jurisdictions. In general, contract law is exercised and governed either under common law jurisdictions, civil law jurisdictions, or mixed-law jurisdictions that combine elem ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Contractual Term
A contractual term is "any provision forming part of a contract". Each term gives rise to a contractual obligation, the breach of which may give rise to litigation. Not all terms are stated expressly and some terms carry less legal gravity as they are peripheral to the objectives of the contract. The terms of a contract are the essence of a contract, and tell the reader what the contract will do. For instance, the price of a good, the time of its promised delivery and the description of the good will all be terms of the contract. "Terms" and "conditions", although slightly different in their significance, are often treated together in phrases such as "standard terms and conditions", or "Ts and Cs". Classification of term Condition or Warranty Conditions are major provision terms that go to the very root of a contract breach of which means there has been substantial failure to perform a basic element in the agreement. Breach of a condition will entitle the innocent party to t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Force Majeure
In contract law, force majeure ( ; ) is a common clause in contracts which essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, epidemic, or sudden legal change prevents one or both parties from fulfilling their obligations under the contract. Force majeure often includes events described as an act of God, though such events remain legally distinct from the clause itself. In practice, most force majeure clauses do not entirely excuse a party's non-performance but suspend it for the duration of the force majeure.Supreme Court (of India) 1285 it was held that "An analysis of ruling on the subject shows that reference to the expression is made where the intention is to save the defaulting party from the consequences of anything over which he had no control." Even if a force majeure clause covers the relevant supervening event, the party unable to perform will ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Clausula Rebus Sic Stantibus
''Clausula rebus sic stantibus'' is the legal doctrine allowing for a contract or a treaty to become inapplicable because of a fundamental change of circumstances. In public international law the doctrine essentially serves an "escape clause" to the general rule of ''pacta sunt servanda'' (promises must be kept). Because the doctrine is a risk to the security of treaties, as its scope is relatively unconfined, the conditions in which it may be invoked must be carefully noted. This term is related to ''force majeure'' and '' hardship clause''. Function in international law The doctrine is part of customary international law but is also provided for in the 1969 Vienna Convention on the Law of Treaties, under Article 62 (Fundamental Change of Circumstance). Although the doctrine is not mentioned by name, Article 62 provides the only justifications for its invocation: the circumstances that existed at the time of the conclusion of the treaty were indeed objectively essential to the o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Hell Or High Water Clause
A hell or high water clause is a clause in a contract, usually a lease, which provides that the payments must continue irrespective of any difficulties which the paying party may encounter, usually in relation to the operation of the leased asset. The clause usually forms part of a parent company guarantee that is intended to limit the applicability of the doctrines of impossibility or frustration of purpose. The term for the clause comes from a colloquial expression that a task must be accomplished "come hell or high water", that is, regardless of any difficulty. History Linguistic historian Robert Hendrickson claims in his book ''Encyclopedia of Word and Phrase Origins'' that the saying derives from a phrase used by sailors in the 1600s "between the devil and the deep blue sea". The first mention of a hell or high water clause in United States case law was in the February 2, 1960, case of ''Matits vs. Nationwide Mutual Insurance Co.'' In that case, Nationwide sought to deny ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Impossibility Of Performance
The doctrine of impossibility or impossibility of performance or impossibility of performance of contract is a doctrine in contract law. In contract law, impossibility is an excuse for the nonperformance of duties under a contract, based on a change in circumstances (or the discovery of preexisting circumstances), the nonoccurrence of which was an underlying assumption of the contract, that makes performance of the contract literally impossible. For example, if Ebenezer contracts to pay Erasmus £100 to paint his house on October 1, but the house burns to the ground before the end of September, Ebenezer is excused from his duty to pay Erasmus the £100, and Erasmus is excused from his duty to paint Ebenezer's house; however, Erasmus may still be able to sue under the theory of unjust enrichment for the value of any benefit he conferred on Ebenezer before his house burned down. The parties to a contract may choose to ignore impossibility by inserting a hell or high water cla ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
