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Hardship clause - Wikipedia

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title="Efficient breach">Efficient breach</a></li> <li><a href="/wiki/Deviation_(law)" title="Deviation (law)">Deviation</a></li> <li><a href="/wiki/Fundamental_breach" title="Fundamental breach">Fundamental breach</a></li></ul></td> </tr><tr><th class="sidebar-heading"> <a href="/wiki/Legal_remedy" title="Legal remedy">Remedies</a></th></tr><tr><td class="sidebar-content"> <ul><li><a href="/wiki/Specific_performance" title="Specific performance">Specific performance</a><sup><small>3</small></sup></li> <li><a href="/wiki/Damages" title="Damages">Money damages</a> <ul><li><a href="/wiki/Liquidated_damages" title="Liquidated damages">Liquidated, stipulated</a>, or <a href="/wiki/Penal_damages" title="Penal damages">penal damages</a><sup><small>3</small></sup></li></ul></li> <li><a href="/wiki/Rescission_(contract_law)" title="Rescission (contract law)">Rescission</a></li></ul></td> </tr><tr><th class="sidebar-heading"> <a href="/wiki/Quasi-contract" title="Quasi-contract">Quasi-contractual obligations</a></th></tr><tr><td class="sidebar-content"> <ul><li><a href="/wiki/Estoppel" title="Estoppel">Promissory estoppel</a><sup><small>1</small></sup></li> <li><i><a href="/wiki/Quantum_meruit" title="Quantum meruit">Quantum meruit</a></i><sup><small>1</small></sup></li> <li><a href="/wiki/Unjust_enrichment" class="mw-redirect" title="Unjust enrichment">Unjust enrichment</a></li> <li><a href="/wiki/Restitution" class="mw-redirect" title="Restitution">Restitution</a></li> <li><i><a href="/wiki/Negotiorum_gestio" title="Negotiorum gestio">Negotiorum gestio</a></i><sup><small>2</small></sup></li></ul></td> </tr><tr><th class="sidebar-heading"> Duties of parties</th></tr><tr><td class="sidebar-content"> <ul><li><a href="/wiki/Canadian_contract_law#Duty_of_honest_contractual_performance" title="Canadian contract law">Duty of honest contractual performance</a> (or doctrine of abuse of rights)<sup><small>6</small></sup></li> <li><a href="/wiki/Good_faith_(law)" title="Good faith (law)">Duty of good faith</a> (also implied covenant of good faith and fair dealing or duty to negotiate in good faith)<sup><small>7</small></sup> <ul><li><a href="/wiki/Contract_A_and_Contract_B_in_Canadian_contract_law" title="Contract A and Contract B in Canadian contract law">Contract A and Contract B in Canadian contract law</a><sup><small>6</small></sup></li></ul></li></ul></td> </tr><tr><th class="sidebar-heading"> Related areas of law</th></tr><tr><td class="sidebar-content"> <ul><li><a href="/wiki/Conflict_of_contract_laws" title="Conflict of contract laws">Conflict of laws</a></li> <li><a href="/wiki/Commercial_law" title="Commercial law">Commercial law</a></li></ul></td> </tr><tr><th class="sidebar-heading"> By jurisdiction</th></tr><tr><td class="sidebar-content"> <ul><li><a href="/wiki/Australian_contract_law" title="Australian contract law">Australia</a></li> <li><a href="/wiki/Canadian_contract_law" title="Canadian contract law">Canada</a></li> <li><a href="/wiki/Contract_Law_of_the_People%27s_Republic_of_China" title="Contract Law of the People&#39;s Republic of China">China (mainland)</a></li> <li><a href="/w/index.php?title=Irish_contract_law&amp;action=edit&amp;redlink=1" class="new" title="Irish contract law (page does not exist)">Ireland</a></li> <li><a href="/wiki/Indian_Contract_Act,_1872" title="Indian Contract Act, 1872">India</a></li> <li><a href="/wiki/Contract_law_in_Saudi_Arabia" title="Contract law in Saudi Arabia">Saudi Arabia</a></li> <li>United Kingdom <ul><li><a href="/wiki/English_contract_law" title="English contract law">England and Wales</a></li> <li><a href="/wiki/Scots_contract_law" title="Scots contract law">Scotland</a></li></ul></li> <li><a href="/wiki/United_States_contract_law" title="United States contract law">United States</a></li></ul></td> </tr><tr><th class="sidebar-heading"> Other <a href="/wiki/Law" title="Law">law</a> areas</th></tr><tr><td class="sidebar-content"> <ul><li><a href="/wiki/Tort" title="Tort">Tort law</a></li> <li><a href="/wiki/Property_law" title="Property law">Property law</a></li> <li><a href="/wiki/Will_and_testament" title="Will and testament">Wills</a>, <a href="/wiki/Trust_law" class="mw-redirect" title="Trust law">trusts</a>, and <a href="/wiki/Estate_(law)" title="Estate (law)">estates</a></li> <li><a href="/wiki/Criminal_law" title="Criminal law">Criminal law</a></li> <li><a href="/wiki/Evidence_(law)" title="Evidence (law)">Evidence</a></li></ul></td> </tr><tr><th class="sidebar-heading"> Notes</th></tr><tr><td class="sidebar-content"> <div class="hlist"> <ul><li>1 Specific to <a href="/wiki/Common_law" title="Common law">common law</a> jurisdictions</li> <li>2 Specific to civil and mixed law jurisdictions</li> <li>3 Historically restricted in common law jurisdictions but generally accepted elsewhere; availability varies between contemporary common law jurisdictions</li> <li>4 Specific to the German <a href="/wiki/B%C3%BCrgerliches_Gesetzbuch" title="Bürgerliches Gesetzbuch">Bürgerliches Gesetzbuch</a> and other civil codes based on the <a href="/wiki/Pandectist" class="mw-redirect" title="Pandectist">pandectist</a> tradition</li> <li>5 Explicitly rejected by the <a href="/wiki/Principles_of_International_Commercial_Contracts" title="Principles of International Commercial Contracts">UNIDROIT Principles</a> of International Commercial Contracts</li> <li>6 Specific to <a href="/wiki/Canadian_contract_law" title="Canadian contract law">Canadian contract law</a> both in Québec and in the country's common law provinces</li> <li>7 Specific to civil law jurisdictions, the American <a href="/wiki/Uniform_Commercial_Code" title="Uniform Commercial Code">Uniform Commercial Code</a>, and Canadian jurisprudence in both Québec and the common law provinces pertaining to <a href="/wiki/Canadian_contract_law#Duty_to_negotiate_in_good_faith" title="Canadian contract law">contractual and pre-contractual negotiation</a></li></ul> </div></td> </tr><tr><td class="sidebar-navbar"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><style data-mw-deduplicate="TemplateStyles:r1239400231">.mw-parser-output .navbar{display:inline;font-size:88%;font-weight:normal}.mw-parser-output .navbar-collapse{float:left;text-align:left}.mw-parser-output .navbar-boxtext{word-spacing:0}.mw-parser-output .navbar ul{display:inline-block;white-space:nowrap;line-height:inherit}.mw-parser-output .navbar-brackets::before{margin-right:-0.125em;content:"[ "}.mw-parser-output .navbar-brackets::after{margin-left:-0.125em;content:" ]"}.mw-parser-output .navbar li{word-spacing:-0.125em}.mw-parser-output .navbar a>span,.mw-parser-output .navbar a>abbr{text-decoration:inherit}.mw-parser-output .navbar-mini abbr{font-variant:small-caps;border-bottom:none;text-decoration:none;cursor:inherit}.mw-parser-output .navbar-ct-full{font-size:114%;margin:0 7em}.mw-parser-output .navbar-ct-mini{font-size:114%;margin:0 4em}html.skin-theme-clientpref-night .mw-parser-output .navbar li a abbr{color:var(--color-base)!important}@media(prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .navbar li a abbr{color:var(--color-base)!important}}@media print{.mw-parser-output .navbar{display:none!important}}</style><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Contract_law" title="Template:Contract law"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Contract_law" title="Template talk:Contract law"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Contract_law" title="Special:EditPage/Template:Contract law"><abbr title="Edit this template">e</abbr></a></li></ul></div></td></tr></tbody></table> <p><b>Hardship clause</b> is a clause in a <a href="/wiki/Contract" title="Contract">contract</a> that is intended to cover cases in which unforeseen events occur that fundamentally alter the equilibrium of a contract resulting in an excessive burden being placed on one of the parties involved.<sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">&#91;</span>1<span class="cite-bracket">&#93;</span></a></sup><sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">&#91;</span>2<span class="cite-bracket">&#93;</span></a></sup> </p><p>Hardship clauses typically recognize that parties must perform their contractual obligations even if events have rendered performance more onerous than would reasonably have been anticipated at the time of the conclusion of the contract. </p><p>However, if continued performance has become excessively burdensome because of an event beyond a party's reasonable control that it could not reasonably have been expected to have taken into account, the clause can obligate the parties to negotiate alternative <a href="/wiki/Contractual_term" title="Contractual term">contractual terms</a> to allow for the consequences of the event reasonably. </p> <div class="mw-heading mw-heading2"><h2 id="Relation_to_force_majeure">Relation to <i>force majeure</i></h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Hardship_clause&amp;action=edit&amp;section=1" title="Edit section: Relation to force majeure"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The hardship clause is sometimes used in relation to <i><a href="/wiki/Force_majeure" title="Force majeure">force majeure</a></i>, particularly because they share similar features and they both cater to situations of changed circumstances. The difference between the two concepts is that hardship is the performance of the disadvantaged party becoming much more burdensome but still possible. <i>Force majeure</i> refers to a party's contractual requirements have become impossible, at least temporarily. </p><p>Hardship is a reason for a change in the contractual program of the parties. The aim of the parties remains to implement the contract. <i>Force majeure</i>, however, is situated in the context of nonperformance and deals with the suspension or termination of the contract.<sup id="cite_ref-3" class="reference"><a href="#cite_note-3"><span class="cite-bracket">&#91;</span>3<span class="cite-bracket">&#93;</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="See_also">See also</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Hardship_clause&amp;action=edit&amp;section=2" title="Edit section: See also"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><a href="/wiki/Clausula_rebus_sic_stantibus" title="Clausula rebus sic stantibus">Clausula rebus sic stantibus</a></li> <li><a href="/wiki/Hell_or_high_water_clause" title="Hell or high water clause">Hell or high water clause</a></li> <li><a href="/wiki/Impossibility_of_performance" title="Impossibility of performance">Impossibility of performance</a></li></ul> <div class="mw-heading mw-heading2"><h2 id="References">References</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Hardship_clause&amp;action=edit&amp;section=3" title="Edit section: References"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1239543626">.mw-parser-output .reflist{margin-bottom:0.5em;list-style-type:decimal}@media screen{.mw-parser-output .reflist{font-size:90%}}.mw-parser-output .reflist .references{font-size:100%;margin-bottom:0;list-style-type:inherit}.mw-parser-output .reflist-columns-2{column-width:30em}.mw-parser-output .reflist-columns-3{column-width:25em}.mw-parser-output .reflist-columns{margin-top:0.3em}.mw-parser-output .reflist-columns ol{margin-top:0}.mw-parser-output .reflist-columns li{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .reflist-upper-alpha{list-style-type:upper-alpha}.mw-parser-output .reflist-upper-roman{list-style-type:upper-roman}.mw-parser-output .reflist-lower-alpha{list-style-type:lower-alpha}.mw-parser-output .reflist-lower-greek{list-style-type:lower-greek}.mw-parser-output .reflist-lower-roman{list-style-type:lower-roman}</style><div class="reflist"> <div class="mw-references-wrap"><ol class="references"> <li id="cite_note-1"><span class="mw-cite-backlink"><b><a href="#cite_ref-1">^</a></b></span> <span class="reference-text">Kluwer Law International <a rel="nofollow" class="external text" href="http://www.trans-lex.org/126600">Force Majeure and Hardship Clauses</a> Retrieved on 14 June 2010</span> </li> <li id="cite_note-2"><span class="mw-cite-backlink"><b><a href="#cite_ref-2">^</a></b></span> <span class="reference-text">Trans-Lex.org <a rel="nofollow" class="external text" href="http://www.trans-lex.org/951000">Definition of Hardship</a> <a rel="nofollow" class="external text" href="http://www.trans-lex.org/951500">Consequences of Hardship</a> Retrieved on 14 June 2010</span> </li> <li id="cite_note-3"><span class="mw-cite-backlink"><b><a href="#cite_ref-3">^</a></b></span> <span class="reference-text">Pace Law School Institute of International Commercial Law <a rel="nofollow" class="external text" href="http://www.cisg.law.pace.edu/cisg/biblio/rimke.html">Review of CISG</a> <a rel="nofollow" class="external text" href="https://web.archive.org/web/20070704055833/http://www.cisg.law.pace.edu/cisg/biblio/rimke.html">Archived</a> 2007-07-04 at the <a href="/wiki/Wayback_Machine" title="Wayback Machine">Wayback Machine</a> Retrieved on 22 August 2007</span> </li> </ol></div></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><style data-mw-deduplicate="TemplateStyles:r1236075235">.mw-parser-output .navbox{box-sizing:border-box;border:1px solid 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