Define: Rebus Sic Stantibus

Rebus Sic Stantibus is a Latin phrase that translates to “things thus standing.” It is a legal doctrine that allows for the modification or termination of a contract when there is a significant change in circumstances that was unforeseen at the time of contract formation.

The Rebus Sic Stantibus doctrine can be invoked when there is a substantial change in circumstances that makes the performance of a contract excessively burdensome or impossible for one of the parties involved.

A substantial change in circumstances can include events such as natural disasters, economic crises, war, or any other unforeseen event that significantly alters the conditions under which the contract was made.

Yes, Rebus Sic Stantibus can be used to terminate a contract if the change in circumstances is so severe that it renders the performance of the contract impossible or fundamentally different from what was initially agreed upon.

Rebus Sic Stantibus can potentially be invoked for any type of contract, but its application may vary depending on the jurisdiction and the specific terms of the contract.

When applying the Rebus Sic Stantibus doctrine, courts typically consider factors such as the foreseeability of the change in circumstances, the impact of the change on the parties’ ability to perform the contract, and whether alternative solutions or remedies are available.

Yes, parties can include a clause in their contract that waives the application of the Rebus Sic Stantibus doctrine. However, such waivers may not always be enforceable, especially if the change in circumstances is extreme and unforeseeable.

Rebus Sic Stantibus and force majeure are similar in that they both deal with unforeseen events that affect contract performance. However, force majeure typically refers to events specifically listed in the contract, while Rebus Sic Stantibus is a broader doctrine that applies to unforeseen events not explicitly mentioned in the contract.

Yes, Rebus Sic Stantibus can be used to renegotiate the terms of a contract if the change in circumstances makes the original terms unfair or impracticable. This allows the parties to adapt the contract to the new reality.

Rebus Sic Stantibus is a principle that has been recognized in various legal systems around the world, although its application and interpretation may differ. It is important to consult with a legal professional familiar with the specific jurisdiction to understand how it applies in a particular case.