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The OZ allows for the termination or modification of a contract if, after its conclusion, circumstances have changed in such a way that they make the fulfilment of obligations more difficult for one party or prevent the achievement of the contract’s purpose (the so-called rebus sic stantibus clause).

If, after the contract is concluded, circumstances arise that significantly hinder the fulfilment of obligations for one party, or if they prevent the achievement of the contract’s purpose to such an extent that the contract clearly no longer corresponds to the expectations of the contracting parties, and if maintaining the contract in its existing form would be generally considered unfair, the party experiencing the difficulty in performance or the party unable to achieve the contract’s purpose due to the changed circumstances may request its termination. Termination of the contract cannot be requested if the party invoking the changed circumstances should have considered them at the time of contract conclusion, could have avoided them, or could have mitigated their consequences. A party requesting termination cannot rely on changed circumstances that arose after the expiration of the deadline for fulfilling its obligations.

The contract will not be terminated if the other party offers or agrees to modify its terms fairly. If the court terminates a contract due to changed circumstances, it may, at the request of the other party, require the party that sought termination to compensate for a fair share of the damages caused by the contract’s termination.186

 

186 Cf. Art. 112 of OZ.

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