Distinguishing between fundamental change of circumstances and force majeure in order to execute a contract amidst fundamental change of circumstances

Abstract

The article provides a supplementary and in-depth analysis of the concept of fundamental change of circumstances, the execution of contracts amidst fundamental change of circumstances, and the differentiation between fundamental change of circumstances and force majeure events. The article aims to elucidate the provision of fundamental change of circumstances within the framework of the Pacta sunt servanda principle (binding force) and the principles of fairness and good faith, in order to clarify the legal basis for incorporating provisions concerning the execution of contracts amidst fundamental change of circumstances into contract law. The article analyzes fundamental economic-legal terms about the obligation of contract performance, including fundamental change of circumstances, force majeure, and the distinction between fundamental change of circumstances and force majeure to execute contracts amidst fundamental change of circumstances.