ances: (1) If it becomes impossible to perform a contract
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as a result of fundamental change in the circumstance existed at the
time of conclusion of the contract, the act according to the contract
need not be performed.
(2) Without prejudice to the generality of sub-section (1),
emergence of any of the following circumstances shall be deemed
to constitute a fundamental change in the circumstance existed at
the time of conclusion of a contract:
(a) If the contract becomes illegal and thereby it cannot be
performed,
(b) If it becomes impossible to perform the contract due to
emergence of situations beyond human control such as
war, flood, landslide, fire, earthquake and volcanic
eruption,
(c) If the subject matter essential for the performance of
the contract is destroyed or damaged, or exists no
longer, or such a subject matter could not be obtained,
(d) If the contract is so concluded that its performance
depends on the personal ability, skill or talent of a
person, and the performance of the contract becomes
impossible by the reason that such a person dies or
becomes insane or is incapable of performing the
contract because of physical or mental disability.
(3) Notwithstanding anything contained in sub-section (2),
none of the following circumstances shall be deemed to constitute a
fundamental change in the circumstance existed at the time of
conclusion of a contract:
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(a) If the performance of the contract has become difficult,
(b) If the performance of the contract results in less profit
or in loss,
(c) If any party to the contract is dependent upon any third
party who is not a party to the contract for its
performance, and the third party makes a default or
becomes incompetent,
(d) In the event of a strike or lockout,
(e) If additional tax, fee or other revenue is required to be
paid,
(f) If a contract is concluded with more than one object
and some of the objects cannot be fulfilled.
(4) In the case of emergence of any of the circumstances
referred to in sub-section (3), the parties may, except as otherwise
provided for in the contract, negotiate to review or alter the terms
and conditions of the contract.
(5) If the performance of a contract becomes impossible by
the reason of a fundamental change in the circumstance as referred
to in sub-section (2), the following matters shall be governed as
follows:
(a) A party who has received any amount paid by the other
party in consideration of the contract, prior to the
occurrence of such a change in the circumstance, shall
refund it to the other party,
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(b) Payment to be made or due from one party to the other
party in consideration of the contract shall not be
payable after such a change in the circumstance.
(c) The amount payable to each other shall be determined
in consideration the act or amount already performed
or paid, if any, by one party to the other party before
such a change in the circumstance, and one party shall
be entitled to recover reasonable expenses incurred by
that party in consideration of the contract from the
other party.
(6) Notwithstanding anything contained elsewhere in this
Section, the contracting parties may agree to fulfill their respective
obligations by continuing the performance of the contract after the
end of the circumstance under clause (b) of sub-section (2).