Renegotiation Process of the Investment Contracts

Conclusion of long term contracts needs to be flexible against subsequent events.because of the longevity of the Investment contracts, parties in such contracts needs to adjust their relationship during the execution of the contract. Renegotiation – if being stipulated – can provide such adjustment to new conditions. One of the issues of the renegotiation is its form and process. Basically such terms include the events which if happened the process of renegotiation will begin. According to such terms parties commit to renegotiate with good will in accordance with declared terms. But renegotiation terms will not force the parties to reach the agreement. Therefor intervention of the third party can be anticipated if the renegotiation failed, which can amplify the flexibility of the contract.