Change of circumstances: CISG, CESL and a case from Scotland

Purpose – The purpose of this paper is to present a critical analysis of the concept of “change of circumstances” as a justification for judicial revision of contracts. Design/methodology/approach – The study analyses international legal texts on the subject in the light of a decision of the Inner House of the Court of Session in Scotland, Lloyds TSB Foundation for Scotland v. Lloyds Banking Group plc [2011] CSIH 87 (currently subject to appeal to the UK Supreme Court). Findings – Whatever the merits of a change of circumstances doctrine, the Lloyds case does not provide a good example for its application. Research limitations/implications – The scope of a change of circumstances doctrine should be tested by further comparative study. Originality/value – This is the first consideration of the Lloyds case in an international and comparative context.