The Contractor’s Right to Restore the Financial Balance of the Contract Due to Exceptional Circumstances According to Libyan Legislation

In this research study, we addressed a topic entitled “The Contractor’s Right to Restore the Financial Balance of the Contract Due to Exceptional Circumstances According to Libyan Legislation.”

The reason for choosing this subject lies in its utmost importance within the framework of administrative contracts, as it represents an effective mean of addressing any exceptional and unforeseen economic obstacle faced by the contractor with the administration during the execution of the contract.

We examined the issue in detail, following a plan divided into sections and sub-sections, through which we discussed the definition of the theory of exceptional circumstances, its forms, and the conditions for its application. We also explained its underlying basis and the effects resulting therefrom.

Our findings led us to several conclusions revolving around the exceptional nature of the theory of unforeseen circumstances in relation to the binding force of the contract. This theory serves as a means of dealing with unexpected events that affect the execution of an administrative contract.

However, the concept has not yet been defined with sufficient precision, nor has the scope of the judge’s authority been clearly determined when it comes to applying relief for the burdensome contract, or the manner in which this should be done. Furthermore, the judge’s authority does not extend to dissolving the contract if the two parties fail to reach an agreement, or if one party refuses the modifications made to address the unforeseen burdens.

Therefore, we recommended greater legislative and judicial attention to this theory in a way that covers all its aspects and reflects its importance in practical life. We also suggested expanding and clarifying the scope of judicial authority, while raising contractors’ awareness of their rights in balance with their obligations in order to safeguard the validity of contracting processes for the execution of projects. Additionally, we emphasized the need to entrench the culture of the right to resort to the judiciary in cases of abuse by the administration against contractors.