11 Hardship, Impracticability, Unconscionability, Unforeseeability
Author: Mr. Joseph Gold1
  • 1 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund
Language:
English
Keywords:
BOOK; currency; exchange rate; unit of account; SDR; ecu; exchange contract; crew agreement; guarantee agreement; adjustment clause; contract price; Exchange rate adjustments; Exchange rates; Exchange rate risk; Depreciation; Currencies

Abstract

Fluctuations in exchange rates can have disturbing and even catastrophic effects on contracts, particularly if performance is necessary over a long period or at a time far ahead. As a consequence, what are known as hardship clauses have become common.1 A hardship clause can be described as a term of a contract under which the contract can be reviewed if a change in circumstances occurs that fundamentally modifies the initial balance between the obligations of the parties, so that performance, though not impossible, becomes unusually onerous for one party.

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Cover Legal Effects of Fluctuating Exchange Rates
Legal Effects of Fluctuating Exchange Rates
Author: Mr. Joseph Gold
ISBN:
9781475506921
Publication Date:
15 Mar 1990
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781475506921.071
Pages:
495