Gaps and Changed Circumstances in Energy Contracts: The Devil in the Detail
8 J. World Energy Law & Business 89 (2015)
15 Pages Posted: 16 Apr 2015
Date Written: April 14, 2015
Energy contracts have long been vexed by questions about the role of gap filling by arbitrators and judges, along with the effect of changed circumstance on the parties’ obligations. Each challenge continues to resist facile analysis as differing legal standards interact with subtleties of contract language and factual matrixes. In the face of these challenges, arbitrators must seek a delicate equilibrium between legitimate respect for bargains and an equally legitimate recognition of expectations that genuine gaps be filled and dramatically changed circumstances receive appropriate consideration. In aiming for counterpoise, common sense normally pays greater dividends than ideology or dogmatism.
Keywords: International Commercial Arbitration, Arbitration, The Gornergrat railway, The Atlantic LNG price adjustment, gap-filling in contracts, fidelity to parties' expectations, pacta sunt servanda, clausula rebus sic stantibus
JEL Classification: K12, K29, K39
Suggested Citation: Suggested Citation