The rules for contractual renegotiation: a call for change

Abstract

Whether it be through the fault of the parties or as a consequence of external influences, those party to a contract often need to modify it to counteract the effects of any adverse variables threatening the agreement. More commonly the change affects only one of the parties directly, who then seeks a compromise which ultimately prompts the other party to provide additional assistance to keep the contract on foot. This article examines the obstacles that stand in the way of contractual modifications and attempts to identify the rules which govern renegotiation. Whilst numerous expedients allay the effect of these obstacles, it will be shown that these are often unknown to the parties or overly cumbersome to utilise. The article also recommends solutions to make this process more commensurate with the needs of modern business.