Frustration of purpose due to change of position: Experiences of the “mixed jurisdictions”
DOI:
https://doi.org/10.21638/spbu25.2023.105Abstract
The article analyses the problem of change of position and frustration of purpose in “mixed jurisdictions”. Frustration of contractual purpose is the doctrine that is known in English law and derives from the so called “coronation cases”. At the same time frustration of contractual purpose is a particular case of subsequent change of external situation. The author systematically considers the issue in the civil law of Louisiana and Quebec. Louisiana and Quebec are “mixed jurisdictions” that harmoniously combine elements of civil law and common law. But today mentioned legal systems solve problems of change of position and frustration of purpose with the help of traditional institutions of civil law: impossibility, force majeure and the doctrine of cause. In practice it leads to that the issue of the influence of change of circumstances and frustration of contractual purpose on obligations becomes stubborn. The reason of it is the objective unsuitability of mentioned doctrines to the issue. Therefore, we need to mention the experience of Argentina. Argentina is not a “mixed jurisdiction” but its Civil and Commercial Code reformed in 2015 harmoniously combine elements of civil law and common law with the aim to solve practical problems. The Civil and Commercial Code of Argentina provides rules not only about subsequent extraordinary change of position and its consequences but in the single article regulate frustration of contractual purpose. Frustration of contractual purpose in Argentina is closely connected with the doctrine of causa. Therefore in the framework of the doctrine of frustration of contractual purpose both the typical purpose of contract of certain kind (i. e. cause in civil law) and the motive that is unique for each contract have legal sense. Recognizing in the Civil and Commercial Code of Argentina the legal sense of party’s motive for entering into contract Argentina in fact departs from the canons of continental law that doesn’t recognize the legal sense of such motives.
Keywords:
contract, contractual obligations, change of position, frustration of purpose, force majeure, impossibility, termination of a contract
Downloads
References
Bilbe, George L. 1999.Mistaken Assumptions and Misunderstandings of Contracting Parties in Louisiana Law and in the Restatement (Second) of Contracts. Louisiana Law Review 59 (3): 885–947.
Caramelo, Gustavo, Picasso, Sebastian, Herrera, Marisa. 2015. Código civil y comercial de la Nación comentado. 1st ed. Vol. 3. Ciudad Autónoma de Buenos Aires: Infojus.
Casad, Robert C. 1974. Unjust Enrichment in Argentina: Common Law in a Civil Law System. The American Journal of Comparative Law 22 (4): 757–783.
De la Torre de Yanzón, Elena. 2021. La frustración de la finalidad del contrato en el Código Civil y Comercial de la Nación. Revista Jurídica Región Cuyo 10. Available at: http://www2.jus.mendoza.gov.ar/biblioteca/boletines2/especiales/2021/210610/Torre.php (accessed: 01.10.2022).
Gastaldi, José María. 2016. La frustración del fin del contrato. Estudios de Derecho Privado: comentarios al nuevo Código Civil y Comercial de la Nación. Liliana Abreut de Begher… [et al.]; compilado por Graciela C. Wüst. 1st ed. adaptada. Ciudad Autónoma de Buenos Aires: Asociación de Docentes de la Facultad de Derecho y Ciencias Sociales de la Universidad de Buenos Aires. Available at: http://www.derecho.uba.ar/docentes/pdf/estudios-de-derecho-privado/gastaldi.pdf (accessed: 01.10.2022).
Gerbaudo, Por Germán E. 05.12.2018. La frustración del fin del contrato en el Código Civil y Comercial de la Nación (Parte I). Diario Comercial, Económico y Empresarial 189. Available at: https://dpicuantico.com/sitio/wp-content/uploads/2018/12/Gerbaudo-Comercial-5.12-Parte-I.pdf (accessed: 01.10.2022).
Gerbaudo, Por Germán E. 12.12.2018. La frustración del fin del contrato en el Código Civil y Comercial de la Nación (Parte II). Diario Comercial, Económico y Empresarial 190. Available at: http://dpicuantico.com/sitio/wp-content/uploads/2018/12/Gerbaudo-Comercial-12.12-Parte-II.pdf (accessed: 01.10.2022).
Handy, Christopher R. 2019. No Act of God Necessary: Expanding Beyond Louisiana ‘s Force Majeure Doctrine to Imprévision. Louisiana Law Review 79 (1): P. 241–280.
Hoff, Timothy. 1978–1979. Error in the Formation of Contracts in Louisiana: A Comparative Analysis. Tulane Law Review 53 (2): 329–379.
Katsivela, Marel. 2011. Canadian Contract and Tort Law: The Concept of Force Majeure in Quebec and Its Common Law Equivalent. Revue du Barreau Canadien 90: 69–104.
Legarre, Santiago. 2011. Precedent in Argentine Law. Loyola Law Review 57 (4): 781–791.
Litvinoff, Saul. 1985. Force Majeure, Failure of Cause and Théorie de l’Imprévision: Louisiana Law and Beyond. Louisiana Law Review 46 (1): 1–63.
Momberg Uribe, Rodrigo A. 2011. The Effect of a Change of Circumstances on the Binding Force of Contracts: Comparative Perspectives. New York.
Nam, Kirill V. 2021. The principle of good faith. Fundamentals of theory and law enforcement in the context of German legal experience. PhD diss. Moscow.
Palmer, Vernon V. 2012. Mixed Jurisdictions Worldwide: The Third Legal Family. 2nd ed. Cambridge, Cambridge University Press.
Petrova, Daria S. 2017. Doctrine of Frustration: Application, Characteristics and Consequences under English Law. Vestnik ekonomicheskogo pravosudiia RF 10: 115–144. (In Russian)
Petrova, Daria S. 2020. Causal motive and its legal significance in contract law. Pravovedenie 64 (3): 373–399. (In Russian)
Petrova, Daria S. 2022. Frustration of contractual purpose under Russian law. Comparative and Legal Study: Monograph. Мoscow, Statut Publ. (In Russian)
Poldnikov, Dmitrii Iu. 2011. Contractual theories in the classic period of ius commune (13th–16th centuries). Moscow, Academia Publ. (In Russian)
Redmann, David E. Jr. 1993. The Role of «Unilateral» Error in Contract Rescission, Construction, and Damage Valuation: A Modest Proposal. Louisiana Law Review 56 (6): 1879–1910.
Robert, Julie. The Heritage Handoff Holdings, LLC v. Ronald Fontanella Case: Would a US$4.4 million misrepresentation be applicable in Québec? Available at: https://www.robic.ca/en/publications/the-heritage-handoff-holdings-llc-v-ronald-fontanella-case/ (accessed on 18.07.2022).
Tetley, William. 2000. Mixed Jurisdictions: Common Law vs Civil Law (Codified and Uncodified). Louisiana Law Review 60: 677–738.
Schley, Amanda B. More on force majeure under Louisiana law. Available at: https://www.lawgroup.biz/more-on-force-majeure-under-louisiana-law (accessed: 18.07.2022).
Yiannopoulos, Athanassios N. 1999. Civil law system, Louisiana and comparative law: A coursebook: texts, cases and materials. 2nd ed. Baton Rouge: Claitor’s Publishing Division.
Zweigert, Konrad, Kötz, Hein. 2000. Introduction to comparative jurisprudence in the sphere of private law. In 2 vols, vol. 2. Rus. ed. Moscow, Mezhdunarodnye otnosheniia Publ. (In Russian)
Downloads
Published
How to Cite
Issue
Section
License
Articles of "Pravovedenie" are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.
