Clausa Rebus Sic Stantibus, a sophisticated Latin phrase, signifies that a treaty remains enforceable only if the conditions remain unchanged from when it was initially signed. If significant changes occur, the validity of the treaty may be compromised. This principle can be explicitly included in a treaty or implicitly understood, even if not explicitly stated. However, it does not apply to treaties concerning borders.
The Latin term clausa rebus sic stantibus is used in international law to refer to a treaty provision that states the treaty is binding only if the circumstances at the time of signing remain substantially the same. If there is a fundamental change in circumstances that alters the essential basis for the parties’ consent to be bound by the treaty and radically transforms the extent of their performances under the treaty, then the doctrine of clausa rebus sic stantibus may be invoked. However, this doctrine does not apply to treaties establishing boundaries. For example, if two countries sign a treaty to share water resources from a river and a drought causes the river to dry up, the treaty may no longer be valid. In this case, the doctrine of clausa rebus sic stantibus may be invoked to release the parties from their obligations under the treaty. This illustrates how the doctrine may be applied when there is a fundamental change in circumstances that alters the essential basis for the parties’ consent to be bound by the treaty.
Clausa Rebus Sic Stantibus is a legal principle that allows for the modification or termination of a contract if there is a significant change in circumstances that was not anticipated by the parties at the time the contract was formed.
Changes in circumstances that can trigger Clausa Rebus Sic Stantibus include natural disasters, economic crises, political instability, and other unforeseeable events that significantly affect the performance of the contract.
Clausa Rebus Sic Stantibus is similar to force majeure in that it allows for the modification or termination of a contract due to unforeseeable events. However, Clausa Rebus Sic Stantibus is a broader principle that can apply to any type of change in circumstances, while force majeure typically only applies to events that are beyond the control of the parties.
Clausa Rebus Sic Stantibus can be invoked in any type of contract, but it is most commonly used in long-term contracts that involve ongoing obligations.
The process for invoking Clausa Rebus Sic Stantibus varies depending on the jurisdiction and the specific terms of the contract. Generally, the party seeking to modify or terminate the contract must demonstrate that there has been a significant change in circumstances that was not anticipated at the time the contract was formed.
The remedies available under Clausa Rebus Sic Stantibus vary depending on the jurisdiction and the specific terms of the contract. In some cases, the contract may be modified to reflect the changed circumstances, while in other cases, the contract may be terminated altogether.
Clausa Rebus Sic Stantibus can be waived in a contract, but the waiver must be explicit and clear. In some jurisdictions, waivers of Clausa Rebus Sic Stantibus are not enforceable.
Good faith is an important factor in the application of Clausa Rebus Sic Stantibus. The parties to the contract are expected to act in good faith and to cooperate in finding a solution that is fair and reasonable.
Clausa Rebus Sic Stantibus cannot be applied retroactively. It only applies to changes in circumstances that occur after the contract is formed.
Clausa Rebus Sic Stantibus and frustration of purpose are similar legal principles that allow for the modification or termination of a contract due to unforeseeable events. However, frustration of purpose typically applies to situations where the underlying purpose of the contract has been frustrated, while Clausa Rebus Sic Stantibus applies to any significant change in circumstances.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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