Renegotiation – the Contract Law establishes the renegotiation as a process of exchanging statements between the parties, in order to meet their points. This is usually performed after an agreement has already been signed. Renegotiation is excluding of the main principle in the Law of Contracts that parties conclude contracts in order to keep their legal relations stable and unchanged for agreed period of time. There are several important circumstances that apply here:
– The main negotiation process has been ended/completed already and the agreement has been signed between the parties who now wish to renegotiate.
– The parties want to amend the valid and binding terms and conditions of the agreement (usually because things have changed or because they have changed their intentions in time of performance of the agreement).
– They start again the process of negotiations, via exchanging opinions and statements, most likely pointed towards signing of an annex to the agreement. For example, in practice where parties buy off-plan properties for agreed price, on a later stage they may decide to renegotiate the deadlines for completion and transfer of Title, or the price.
See also “negotiation”.