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A contemporary perspective in the revision of power purchase agreement in light of unforeseen circumstances
In this article, we analyze the intrinsically variable and unforeseen behavior of the Chilean electricity market regarding power purchase agreements, emphasizing the transformation caused by the massive influx of non-conventional renewable energies since 2015. In this vein, on behalf of the unforeseen events theory and price adjustment or revision clauses, we study the parties possibilities to readjust their agreements in light of the new circumstances that arise after its conclusion.
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UNFORESEEN CONDITIONS IN LUMP SUM CONSTRUCTION CONTRACTS AND ITS APPLICATION TO THE WORKSITE
Rule 2 of article 2003 of the Chilean Civil Code enables the contractor to request a revision of the contract price when unforeseeable circumstances cause increased costs. This paper revisits the norm in light of certain general legal principles in order to challenge the extension and legal foundation that it has traditionally been attributed with. This work also offers certain parameters that guide the renegotiation process between the parties or the determination of the price increase by the tribunal, when applicable. This work concludes with a review of the clauses most commonly used to alter the rule’s effects, as well as the convenience of their inclusion. The mentioned rule has been analyzed by adopting unforeseen site conditions as the base case, since it is a recurring cause for relevant disputes between the parties in the construction industry.