| How to apply the principle of substantial change of circumstances is an inevitable problem of the contract law practice in every jurisdiction. The legislations, judicial precedents, theories and even international law are exploring, in various degrees, on the topics of whether or not to admit this principle, and how to define the conditions for applying it and its legal consequence. Our contract law has no clear provisions about this principle, but it is always deemed as an important legal problem in the realms of judicial practice and theoretical study. 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. The principle of substantial change of circumstances aims at rectifying the various negative effects of legal formalism and pursuing substantive justice in individual cases. Because the superordinate concept of this principle is the principles of justice and good faith, it is abstract in connotation, unclear in standard and easily abused, and has aroused much controversy theoretically and practically. In order to grasp the applicable requirements precisely, set up the applicable mechanism strictly and realize the safe application of this principle as far as possible, it is undoubtedly the most efficient research method to analyze, organize and summarize the precedents other than referencing to the diverse legislative patterns and theories of various countries. There are a great deal of 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. By applying the categorization method, we can promote the essences and inevitable mistakes abstracted from these judgments into theoretical model with intrinsic logic system, thus provide beneficial references to further research and judicial application of this principle. |
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