THE APPLICATION OF CHANGED CIRCUMSTANCE PROVISION IN INTERNATIONAL SALE CONTRACTS

Abstract

International sales contracts are subject to a number of changes in economy, politics, law and nature that make the performance of a contract, although possible, become generously burdensome. The Civil Code 2015 acknowledges such situation in Article 420 as a ground for adaptation or termination of a contract. The United Nations Convention on Contracts for International Sale of Goods (CISG), which was effective to Vietnam since 2017, have a similar provision in Article 79. Regarding changed circumstances, UNIDROIT Principles of International Commercial Contracts 2016 provides very clear and precise provisions. The aim of this Article is to analyze the mentioned provisions in a comparative perspective in order to make recommendations for parties to cross-border sales of good transactions to include a changed circumstances clause in their contract.