Changed Circumstances Require Adaptation

When circumstances change significantly, Chinese agreement practice expects adaptation rather than rigid adherence to original terms. Insisting on strict compliance despite fundamentally changed conditions is considered unreasonable — even a form of bad faith.

This doesn’t mean agreements aren’t binding; they are. But what they bind you to includes working through changed circumstances together, not merely mechanical performance regardless of context. When conditions shift substantially, parties should discuss the situation and adjust terms to reflect new realities while preserving the relationship and the spirit of original agreement. Flexibility and mutual accommodation are part of what agreement implies. Working through difficulties together strengthens relationships; rigid insistence on terms damages them.

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