Changing Circumstances and Mechanism of Contractual Conditions for Balancing Interests in Petroleum Contracts

Document Type : Scientific research

Authors

Sfandyar Kordi ¹

Reza Tajarlou ²

¹ PhD Student in International Law, Azad University< Science and Research, Tehran, Iran

² Associate Professor Faculty of Law and Political Science, University of Tehran, Tehran, Iran

https://doi.org/10.22067/economlaw.2022.71926.1077

Abstract

In oil and petroleum contracts, unexpected events causes drastic changes in the original terms and conditions of contracts and balance of interest of parties will be adversely affected and interrupted. Various conditions need to be foreseen for these clauses such as forecasting contractual mechanisms for renegotiation, revisit and adaptation of economic equilibrium which accordingly would substitute the preliminary agreement with new conditions in such contracts so that the interests of the parties continue to be balanced. Undoubtedly, one of the most important developments in the field of petroleum contracts is the modern approach to contract terms for the continuation of the contract through a compromise between the interests and legitimate expectations of the parties under the terms of the modification of the contractual obligations of those actors changed in the circumstances. Thus, what is the mechanism of contractual equilibrium in oil contracts? This is a question that this article seeks to answer by examining and analyzing the terms of the contract and its achievement is ‘‘The mechanism of contractual conditions for balance is a new approach to coexistence and a combination of renegotiation conditions and stability conditions to increase contract the versatility and reduce the hardness of the contract to create a balance of benefits and increase the efficiency and performance of the oil contract’’

Keywords

oil contracts

renegotiation clause

economic balance

revisit and adaptation

contractual mechanism

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©2022 The author(s). This is an open access article distributed under Creative Commons Attribution 4.0 International License (CC BY 4.0)

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