Rebus sic stantibus in Spain's Supreme Court: post-COVID application and current criteria
Supreme Court case law on rebus sic stantibus: requirements, effects, application to leases and long-term contracts after the COVID-19 pandemic.
# Rebus Sic Stantibus in Spain's Supreme Court
Classical Doctrine
The rebus sic stantibus clause allows modification or dissolution of contracts when unforeseeable supervening circumstances substantially alter the contractual balance. The TS applies it exceptionally as an exception to pacta sunt servanda.
COVID-19 Impact (2020-2022)
STS 11/3/2021 and STS 15/6/2021: The TS rejected automatic dissolution but admitted temporary rent modification during forced closure periods, proportional to the time of impossibility of use.
STS 14/12/2022: Applied rebus to an energy supply contract due to extraordinary post-Ukraine invasion price increases; extending the doctrine beyond COVID.
Current Criteria (2023-2025)
Rebus applies when the contract has not allocated the risk of the supervening contingency. The preferred remedy is modification, not dissolution. The party invoking rebus must have first attempted good-faith renegotiation. Contracts with price review clauses exclude rebus for the covered contingency.
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