Renegotiation clauses in the governance of long term contracts
Contract. Economic analysis. Contract design. Hardship. Renegotiation
The thesis examines renegotiation clauses and their role in the governance of long-term business contracts. Through these cla create an obligation to review the contract to adapt it to supervening changes in circumstances that disrupt its original balance regulatory, technological, commercial, or political environment. The research suggests that hardship clauses contribute to gove providing reference points for the parties’ negotiations, creating incentives or disincentives depending on how they are drafted