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Theory of unpredictability

Ec 3 Litigation

Is called improvidence contractual o theory of the improvidence to the one related to extinction or judicial modification of the obligationscontract commutative de execution successive or deferred, based on the done if the conditions under which they were contracted had been substantially modified. It is similar, but not identical, to the so-called Hardship Clause of the right Anglo-Saxon.

La institution It is based on the good faith contractual, since the person cannot be forced debtor a comply su legal obligation when the conditions under which the contract originated (by application of the principle Rebus sic stantibus"), conditions that if they exist tiempo of celebration, they would not have allowed the contract or, in /// on the contrary, under radically different conditions.

La theory of the improvidence postulates that, in view of the idea a done extraordinary, general, unforeseeable, and beyond the control of the parties, which causes an economic imbalance between the benefits agreed upon in a contract, making it more burdensome fulfillment Plans obligations for one of the contractors, the part affected may request the modification of the contract a effect to restore balance to the obligations and agreed compensation.

La theory of the improvidence, excessive burden of the benefithardship,It is the response that various legal systems and international regulatory bodies have adopted to maintain the economic balance of the conventions, in the face of the sudden, extraordinary and unforeseeable variation of the conditions that were in place at the time of their signing. Although their effects may vary depending on the jurisdiction in question, this figure raises, in a sense the capital market sector, equity side and debt side, in all the preparatory and executive phases for the issue and placement of financial instruments;, the possibility of modifying and/or renegotiating the conditions of a contract to the idea of extraordinary eventualities that were not “foreseen” by the contractors.

There are conditions for this theory operate, these are:

a) That there is a operación merchant o civil excessively burdensome for one of the parties,

b) That said burden is the result of an extraordinary event of a national, and

c) That those involved could not have foreseen the aforementioned event.

In this order of ideas, it is necessary that when the conditions that cause inequality in the obligations a contract come from an event national, one of those involved may request a restructuring of the contract in order to balance the obligations.

Provenance

You can invoke the improvidence in commutative and contractual contracts successive tract or execution deferred in the tiempo.For example, in the leasing of things, works or services; mutual de money; etc.

Effects

In general terms, the institute commented empowers the debtor prejudiced to request the extinction of the link contractual and, therefore, of the obligations born as a result of it. Without embargo, in certain cases, said extinction does not reach the effects already fulfilled of the contract.

Alternatively, the debtor may request an equitable modification of the obligations emerging from the contract affected. The existence or not of such opción at the request of the debtor depends on the specific legal systems.

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