Question

Is there any real world example of renege and renegotiation? (with reference to contracting prolems）？

Answer 1

Yes,there are examples of renege and renegotiation in real World with reference to contract problems but before going into these examples let us see definition of these two words.

Renege means to go back on a promise,undertaking,agreement or contract.

Renegotiation means to negotiate (part or full) a previously agreed contract,agreement and make changes to original terms.

Examples of Renege

1) Evergreen Solar vs. Lehman Brothers(also Barclays PLC was included)-After the famous stock market crash of 2008 Evergreen Solar Inc(maker of solar power panels) sued Lehman Brothers of reneging on their contract of returning shares loaned by Evergreen Solar to Lehman Brothers in case Lehman Brothers filed for bankruptcy. In its accusation Evergreen said that shares were sold to Barclays instead of returning it to Evergreen.

2) US-China trade deal-The deal which dominated whole of last year 's had its ups and downs,one of the pivotal moment of the deal was on 6th May,when US accused China of reneging on the terms of the deal which was countered by China couple of days later.

Above two examples show renegation happens in real world,however criminal and embarrassment aspect related to renegation makes it harder to pull off.

Examples of renegotiation

1)NAFTA renegotiation-North American Free Trade Deal(NAFTA) was renegotiated by US,Mexico and Canada into USMCA on 30th November,2018 after US President Donald Trump insisted on changing terms of NAFTA,for example one of the terms changed was minimum requirement of components from US,Canada or Mexico in truck parts,requirement was changed from 62.5% to 75%.

As you can see both renegation and renegotiation have real world examples,that too in very recent history.

Answer is complete. Thank you!!