%0 Journal Article
%T The Impact of Dynamic Interpretation on Contract Balance
%A Meng Li
%A Yu Kumar
%A Yi Todayama
%J Asian Journal of Ethics in Health and Medicine
%@ 3108-5059
%D 2021
%V 1
%N 1
%R 10.51847/vG4phUr9qQ
%P 1-8
%X 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.
%U https://smerpub.com/article/the-impact-of-dynamic-interpretation-on-contract-balance-dpqxe37kpppvjqf