Imprevision

Summary of Imprevision

A doctrine of contract law applied in some legal systems that recognizes a fundamental disturbance of the economics of a contractual relationship attributable to forces that were unforeseeable at the time the parties entered into the contract. The concept of unforeseeable disturbance is essential to the doctrine, which may be asserted in law to restore the original economic equilibrium of the contract. This doctrine is often asserted in cases where abnormal fluctuations in exchange rates have negatively affected one or more parties to a contract.

(Main Author: William J. Miller)