Financial Crises and Danish Contract Law: No Room for Hardship

Abstract

Danish law recognizes a number of modifications to the pacta sunt servanda rule. When such modifications apply, a promisor may be relieved, in whole or part, of its obligation to perform as originally agreed. Due to the emphasis usually placed on pragmatic considerations in Danish law (which goes hand in hand with a lack of legal formalism in our legal system), the various recognized exceptions to pacta sunt servanda – both statutory and otherwise – sometimes tend to overlap. So although it seems appropriate in a comparative context to provide a schematic (point by point) presentation of these exceptions - e.g. with specific focus on exceptions related to the possible effects of financial crises ("Hardship") - account must also be taken of their interaction in Danish legal theory and practice, not least because Danish courts do not always specify the exact legal principle which they apply when holding that a contractual provision is not binding.
Original languageEnglish
Title of host publicationThe Effects of Financial Crises on the Binding Force of Contracts : Renegotiation, Rescission or Revision
EditorsBaşak Başoğlu
Number of pages15
Volume17
PublisherSpringer
Publication date2016
Pages121-135
Chapter7
ISBN (Print)978-3-319-27254-2
ISBN (Electronic)978-3-319-27256-6
DOIs
Publication statusPublished - 2016
SeriesIus Comparatum - Global Studies in Comparative Law
Volume17

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