What does the Clause Rebus sic Stantibus consist of?

The “Rebus sic stantibus” principle is a Latin legal term recognized in the practice of Law in different parts of the world.

This phrase is used as an exception to the principle pacta sunt servanda, which translates as 'being things like this' or 'maintaining in that state'. Its use implies that the terms and conditions of the contracts can be modified in the event of substantial, extraordinary alterations beyond the control of the parties, due to the circumstances that arose at the time of their execution, so that compliance with the obligation becomes more burdensome. Due to the imbalance between the considerations.

There are contradictory theories regarding the application of this principle, since it contravenes the execution of the legal precept pacta sunt servanda, which establishes that everything stipulated between the parties, in any way that has been agreed, must be executed, for which it is the application of the rebus sic stantibus clause, is somewhat unjustifiable.

However, over the years this principle has intervened on different occasions to achieve a fair and equitable balance; For example, on September 24, 1943, lease contracts for a house were extended for the duration of World War II.

By Lic. Daniela Olmos