Adjustment of Contract, i.e. Conciliation

According to the Contracts Act, a contractual term may be modified or invalidated if it is deemed unfair or if its enforcement would lead to unfair outcomes. However, such modifications are rare in contracts made by two companies. The evaluation of a contract considers the entirety of its content and the parties' positions. Furthermore, attention is given to circumstances surrounding the contract's formation and subsequent events, as well as other potentially pertinent factors.

Unreasonable contractual conditions may be conciliated in court in exceptional circumstances. This is possible even if there is no ground for voidness or invalidity. Conciliation is always an exception and is only used in situations where the contracting parties are in un-equal bargaining positions. In practice conciliation is not usually possible if the change in circumstances should have been foreseen by the parties before making the contract. The change should therefore be unforeseeable. When a contact is conciliated it is always considered as a whole even if only one of its provisions is amended. Therefore, a condition which seems unreasonable at first may in fact be reasonable when read together with other provisions.

In practice, conciliation may result in the amendment or disregard of a specific condition, amendment of other parts of the contract or even the contract being declared void. Amendment of other parts of the contract only becomes relevant if it is not possible to achieve the desired result by amending or disregarding the unreasonable condition. It is extremely rare for the entire contract to be declared void.