ABSTRACT
The principle of pacta sunt servanda requires parties to contracts to meet their contractual obligations, which constitutes a basic principle in Chinese contract law. However, to comply with the principle of good faith and fairness, exceptions to the strict application of the pacta principle should be allowed if circumstances existing at the time of contracting and forming the basis of the contracts have changed fundamentally. Chinese contract law provides two such exceptions, force majeure and change of circumstances. These exceptions play an important role against the backdrop of COVID-19 and have triggered heated discussion worldwide. This chapter examines how these two exceptions have been formulated in the Chinese Civil Code and how they operate in the commercial world. The chapter aims to provide a comprehensive and critical assessment in terms of whether they are workable both in age of coronavirus and in other contexts.
