Emergency circumstances in Iraqi law

Abstract

The basis of the theory of emergency circumstances, according to jurists, is: (If during the implementation of the contract, incidents or circumstances arise, whether natural, economic, or the work of non-contracting parties, that were not taken into account or could not be predicted when concluding the contract and that would cause huge losses that would seriously disturb the financial balance. For the contract, the contracting parties are obligated to participate in bearing their share of the loss that befell one of them throughout the period of the emergency circumstance to ensure the implementation of the contract. The theory of emergency circumstances is based on two foundations: It is not fair, just, or good faith in transactions for one of the contracting parties to be left subject to bad conditions resulting from an external force without intervention. He has the right to do so simply for the sake of making a profit or executing the contract at the expense of the other contractor. The second basis is that failure to compensate the contractor in the event of emergency circumstances leads to his reluctance to participate in any contract for the benefit of the state in the future or his exit from the labor market permanently, and this leads to the replacement of incompetent contractors. In their place, which leads to endless disputes and problems and the disruption of the work of public facilities, or resorting to raising their bid prices as a precaution against changing circumstances after contracting, which may lead to inflicting heavy losses on them, which prevents the administration from obtaining the most appropriate bids at the lowest prices, which leads to harm to the public interest.