Hardship in the Energy Sector
Article from: OGEL 4 (2020), in Roundup of Articles
Executive summary
The hardship theory, being a notion embodied in different legal systems in varied ways, such as the German "Wegfall der Geschäftgrundlage" or the French "Théorie de l'Imprévision", generally consists in a substantial, unforeseeable and external modification of the existing balance within a contractual relationship that leads towards serious consequences rendering the performance of one party excessively onerous to fulfil. Such a theory is of great importance within the energy sector, characterised by price volatility, increasing cross-border relationships and long-term ...