The effect of changing conditions on the contract a study in French Decree No. (131) of 2016

Abstract

 Renegotiation occupies a significant position in the field of international commercial contracts, as the international contract is closely linked with several contracts, such as contracts for transporting goods and insuring them against risks, as well as its association with several banking operations, such as documentary credit, and because of the complex nature of this type of contract, And the longer the period of its implementation, the possibility that the contract will be exposed to problems resulting from the change of circumstances will increase, even if the two parties to the contract specify the resulting effects accurately.
It is not appropriate to terminate the international contract as a result of the changing circumstances, because it cost the two parties a lot of time and money in order to conclude it, and when applying the general rules for termination, then the two parties must return to the situation they were in before the conclusion of the contract, which leads to disruption of the economic conditions of the parties to the contract If the international sales contract is terminated, the seller will suffer from the change in prices, but his suffering will be most severe in the event of the loss or damage of the goods, while the buyer will suffer from intransigence in recovering the price from the seller, which leads to the paralysis of his economic activity, in whole or in part. 
As a result of the foregoing, renegotiation had an important and effective role in preserving the contractual relationship between its two parties because it provides them with the freedom to determine the fate of their contract in accordance with what is required by their common interest, and thus avoiding the intervention of the judiciary or arbitration in their contractual relationship.
The legal basis for renegotiation may be contractual, that is, it is agreed upon by including it as a clause in the contract, or through the development of an independent agreement to do so. Intent, when a fundamental change in circumstances occurs after the conclusion of the contract.