The Effects of Financial Crises on the Binding Force of Contracts - Renegotiation, Rescission or Revision

  • Başak Başoğlu

Part of the Ius Comparatum - Global Studies in Comparative Law book series (GSCL, volume 17)

Table of contents

  1. Front Matter
    Pages i-xix
  2. General Report and Original Questionnaire

  3. National Reports

    1. Front Matter
      Pages 31-31
    2. Maja Bukovac Puvača, Gabrijela Mihelčić, Iva Tuhtan Grgić
      Pages 83-99
    3. Mads Bryde Andersen, Joseph Lookofsky
      Pages 121-135
    4. Başak Baysal
      Pages 313-330
  4. Back Matter
    Pages 331-333

About this book


This book is about one of the most controversial dilemmas of contract law: whether or not the unexpected change of circumstances due to the effects of financial crises may under certain conditions be taken into account. 

Growing interconnectedness of global economies facilitates the spread of the effects of the financial crises. Financial crises cause severe difficulties for persons to fulfill their contractual obligations. During the financial crises, performance of contractual obligations may become excessively onerous or may cause an excessive loss for one of the contracting parties and consequently destroy the contractual equilibrium and legitimate the governmental interventions. 

Uncomfortable economic climate leads to one of the most controversial dilemmas of the contract law: whether the binding force of the contract is absolute or not. In other words, unstable economic circumstances impose the need to devote special attention to review and perhaps to narrow the binding nature of a contract. Principle of good faith and fair dealing motivate a variety of theoretical bases in order to overcome the legal consequences of financial crises. 

In this book, all these theoretical bases are analyzed with special focus on the available remedies, namely renegotiation, rescission or revision and the circumstances which enables the revocation of these remedies. 

The book collects the 19 national reports and the general report originally presented in the session regarding the Effects of Financial Crises on the Binding Force of Contracts: Renegotiation, Rescission or Revision during the XIXth congress of the International Academy of Comparative Law, held in Vienna, July 2014.


Binding Effect of the Contracts Clausula Rebus Sic Stantibus Dealing with Financial Crises Derogating from the Principle of Sanctity of Contracts Designated Money Trust Contracts Doctrine of Frustration Effects of Financial Crises Financial Crises Financial Crises on the Binding Force of Contracts Frustrated Contracts Act Influences of Changes of Circumstances on Contracts Legal Aspects of Contemporary Economic Climate Limits to the Binding Force of the Contracts Pacta Sunt Servanda Principles of Good Faith and Fairness Response to Financial Crises Room for renegotiation Sub-lease Cases and Repayment Claims of Deposits Theory of Unforeseeability

Editors and affiliations

  • Başak Başoğlu
    • 1
  1. 1.Istanbul Kemerburgaz UniversityIstanbulTurkey

Bibliographic information