| Each party bound to a contract at the time they signed the contract. As it consequences, each party must fulfill their obligation as agreed in the contract. A contract that is formed in accordance with the provisions of laws and is valid has the legal force to its parties (pacta sunt servanda). This principle has been established in most legal system. However, in some certain circumstances, there are some inevitable conditions, that left the parties no option rather than not to fulfil the obligation as it is stipulated in the contract, not because of their fault or that they have any intention to breach the contract. It is when one or some of these following conditions applied: when there is a change of fundamental circumstance (rebus sic stantibus); when there is a force majeure; and when there is hardship. Therefore such circumstances which may cause the unfulfilled of obligations of a party in a contract, must be clearly understood by the parties who will engaged themselves in a contract without forgetting its consequences to both parties. |