Supreme Court dismisses claim to renegotiate currency risk clause due to lack of force majeure. The court held that normal market fluctuations do not constitute unforeseeable events. Consequently, the contractual obligation remains binding and enforceable. This decision clarifies the strict interpretation of force majeure in commercial contracts. The ruling emphasizes that parties must bear standard economic risks. It establishes that only extraordinary, unforeseeable events justify contract modification. The judgment reinforces the principle of pacta sunt servanda in Finnish law.
Finland (FI)
Legislator summary
AI generatedThe Supreme Court of Finland dismissed the plaintiff's request to renegotiate a currency risk clause in a loan agreement. The plaintiff argued that extreme currency fluctuations constituted a force majeure event requiring contract adjustment, while the defendant maintained the original terms were binding. The court ruled that ordinary market volatility does not meet the legal threshold for force majeure, as it is a foreseeable commercial risk. Therefore, the contractual obligation to repay according to the original exchange rate terms remains fully enforceable.
Legislator headnote
AI generatedS. 10 of the Contracts Act 1974; s. 10 of the Contracts Act 1974: Force majeure requires an unforeseeable, unavoidable, and insurmountable event; ordinary market fluctuations do not qualify as force majeure, and parties remain bound by their agreed terms.
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Kysymys valuuttaluottosopimuksen kurssiriskiä koskevan ehdon sovittelemisesta.