Authority of the Party Affected by the Changed Circumstances and Authorisations of the Court // Ovlašćenja strane pogođene promenjenim okolnostima i ovlašćenja suda

Abstract

Investment in the economy is necessary and essential, and lack of personal funds are overcome by encouraging and attracting foreign investment. Business practice shows that all sophisticated investors and lenders insist on the so-called. pricing schemes, which are adaptable to changing circumstances during long-term contracts with successive or permanent fulfillment. Countries, where most of the international commercial lenders are located, consider that the Fixed Price Contract also includes the division of the business risk. However, per our law, a Fixed Price Contract is not also a redistribution of business risk, which means that in case of external events parties are required to fulfill their obligations. Why is this significant? If there are no contractual provisions, that regulate the contract adjustments related to the changed circumstances, then the used provisions are from the host country which legal terms are determined.