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This paper deals with the influence of hardship (frustration) clause (clausula rebus sic stantibus) on the contract and the possibility of the party affected by changed circumstances to request a judge to modify or terminate the contract. The paper presents a brief historical overview of the institute of clausula rebus sic stantibus in Croatian and some European legal systems. The conditions under which the affected party can make a claim to the court are listed and analyzed in the context of possible solutions de lege ferenda. Special attention is given to the scope of this clause, with the emphasis on unilateral contracts. Since case law always had a big impact on this institute, the paper brings numerous court decisions pertaining to modification or termination of contracts due to changed circumstances.

MODIFICATION OR DISSOLUTION OF CONTRACTS DUE TO CHANGED CIRCUMSTANCES (CLAUSULA REBUS SIC STANTIBUS)