eo
é &UNFORESEEN CIRCUMSTANCES
by
Jacobus Rozemond
Advocate - Amsterdam
a Paper given on
4th March 1986
to the Society of Construction Law
on clause 47 of the Dutch Standard
Conditions of Contract, U.A.V.Unforeseen Circumstances
The Dutch Civil Code does not, at the moment, contain a general
rule regarding the influence of unforeseen circumstances on
the rights and obligations of the parties to a contract.
Dutch Courts - unlike the Courts in other European countries
- did not until deep into the twentieth century recognise
any right to change the contents of a contract+
A disturbing example is the "mark is mark" case (H.R. 2
January 1931, NJ 1932, 274), Somebody borrowed, in 1908,
125,000 German marks. In 1924 the old Gernan marks were
converted into new marks at a rate of 1 billion old marks
for one new mark. The lender wanted repayment in Dutch
currency at the exchange rate of the new mark, but the
Cassation Court refused. The payment had to be calculated on
the basis of the exchange rate of the old mark. Change of
circumstances was not accepted as a reason for a more
equitable solution,
Not until long after the Second World War, in 1973, did the
Cassation Court recognise that in exceptional cases a
situation could exist where reliance upon a contractual clause
should be denied as being contrary to the rules of equity,
reasonableness or good faith. The new draft Civil Code will
contain a rule that in the case of changed circumstances the
Court may change or even rescind the contract.
Construction contracts
The development of the rules regarding construction
contracts has been different from the approach of the Courts.
As early as 1915, the national cabinet decided to compensate
contractors working for the government for two-thirds of the
damages suffered as a consequence of rising prices of raw
materials. At that time there was no general fluctuations
clause in the standard contract conditions.
In 1938, new standard conditions for government work
contracts were published, containing a few specific rules
regarding extraordinary circumstances, but these rules were
restricted to such things as damage to the works and the
effects of new legislation. A general rule on unforeseen
circumstances was still missing.
The outbreak of the Second World War and the occupation of
the country in 1940 changed all this radically.
Two measures were taken by the government. The first was the