Yes, FM doctrine reflected in article 1105 of the Spanish Civil Code.

Applies in the absence of any specific agreement on the contrary reached by the parties.

No. FM doctrine applies in the absence of any specific agreement on the contrary reached by the parties.

There is no formality to invoke, but for an event to qualify as FM, it must:

1. Cause an absolute impossibility for the affected party to fulfill its contractual obligations
2. Be totally unforeseeable or unavoidable
3. Not be caused by the parties, i.e., it must be beyond the control of the parties

There is no specific obligation to mitigate the damages in the event of FM, other than the obligation to act always in good faith.

As for article 1105 of the Civil Code, if the legal or physical impossibility to perform obligations:

• is temporary, the FM could entail suspension of the contract;
• is absolute and final, FM would entail termination of an agreement, without liability of any party.

In any event, no party shall be liable for the damages arising from the FM event.

Rebus sic stantibus (fundamental change of circumstances)

Summary: entitles a party to review or to terminate an agreement due to an extraordinary change in the circumstances. However, used very restrictively by the courts.

Requirements:

1. An extraordinary change in circumstances occurs, beyond the control of the parties.
2. The change was unforeseeable at the time of signing the agreement.
3. The change frustrates the purpose of the agreement or makes compliance with the contract excessively onerous for one of the parties and eliminates the balance in the mutual obligations assumed by both parties.

Consequences: obligations of parties should be reviewed and adapted in order to restore the balance for both parties. If the balance cannot be restored by adapting the parties' obligations, the contract may be terminated.