The plenary session of Les Corts Valencianes has taken an important step in the protection of businesses and families affected by the flood on October 29, approving a non-law proposal to urge the Government of Spain to incorporate the clause rebus sic stantibus to the legal system. This initiative could mark a turning point in the review and balance of contracts in extraordinary situations. The proposal, presented by the Popular Party of the Valencian Community, has managed to go ahead with the support of Compromís, while the PSPV has shown its rejection.
Javier Orduña, advisor to Tomarial Abogados, former Supreme Court judge and leading expert on the subject, says "given the lack of aid to people affected by the recent DANA, the clause rebus sic stantibus It could allow thousands of companies affected by the flood to renegotiate their contracts and thus overcome the situation they are experiencing. The Supreme Court supports the application of the clause rebus so that they can adapt to the crisis caused by the flood. They have the right to use it to review their contract."
What is the clause rebus sic stantibus?
The clause rebus sic stantibus It establishes that a contract remains valid as long as the conditions and circumstances under which it was initially agreed remain unchanged. However, when an exceptional event drastically alters these conditions, this legal figure allows contracts to be reviewed or adjusted to restore balance between the parties.
In the case of the DANA, which has caused serious economic and material damage, this clause could become a key tool to adjust the contractual obligations of those affected. The exceptional and unexpected situation justifies that the contracts be renegotiated to adapt to the new reality.
This legal support provides a solid framework for those affected to negotiate new conditions in their contracts, adjusting obligations that would otherwise be impossible to meet in the current context.
A step towards contractual adaptation
The application of this clause will not only be a support measure for those who have suffered the consequences of the DANA, but it also sets an important precedent for dealing with future crises. Adapting contracts to the new economic and social realities will allow companies and families to face the challenges that arise in times of adversity with greater guarantees of success.
En Tomarial Lawyers, Economists and Consultants We are committed to advising and supporting our clients in the application of this legal figure, helping them find solutions that allow them to overcome difficulties and look to the future with confidence.