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Asian Journal of Ethics in Health and Medicine

2021 Volume 1

The Impact of Dynamic Interpretation on Contract Balance


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  1. Mississippi State University – Meridian, Division of Business, Riley Campus, 2212 5th Street, #410 Meridian, MS 39301, United States.
  2. Goodman School of Business, Brock University, St. Catharines, ON, Canada; HUST, Wuhan, China; and WE School of Management, Mumbai, India.

  3. J. Mack Robinson College of Business, Georgia State University, 35 Broad Street, Suite 1329, Atlanta, GA 30303, United States.

Abstract

In today’s environment of rapid and unpredictable change, international contracts are frequently exposed to shifting circumstances. Consequently, the original balance envisioned by the parties may be disrupted, creating challenges in contract performance for all involved. Although the principle of pacta sunt servanda is widely recognized, most legal systems also acknowledge the doctrines of changing circumstances and Hardship. This study focuses on employing dynamic methods during the contract interpretation phase to realign the contract with the parties’ original and actual intentions, thereby restoring Contract Balance. This approach requires consideration of actions occurring not only at the time of contract formation but also before and after it. Moreover, attention should extend beyond events at the moment of contract conclusion. Parties can anticipate potential changes by including provisions such as a Hardship clause or a Changes clause to mitigate the impact of future variations. Additionally, referencing prior dealings, customary practices, and applying interpretive rules can further enhance the effectiveness of dynamic interpretation.


How to cite this article
Vancouver
Li M, Kumar Y, Todayama Y. The Impact of Dynamic Interpretation on Contract Balance. Asian J Ethics Health Med. 2021;1:1-8. https://doi.org/10.51847/vG4phUr9qQ
APA
Li, M., Kumar, Y., & Todayama, Y. (2021). The Impact of Dynamic Interpretation on Contract Balance. Asian Journal of Ethics in Health and Medicine, 1, 1-8. https://doi.org/10.51847/vG4phUr9qQ

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