The Restriction on the Retroactive Effect of Nullity or Revocation in Long-term Contracts - Observance of the Principle of Retroactivity, Limitations on Liability for Damages -

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Exploration of retroactive effect in long-term contracts highlights challenges in nullity and damages.

Maintaining retroactive effect in long-term contracts is essential for satisfying legal regulations, and it ensures restitution.
In jurisdictions like Germany and Austria, retroactive effect is often restricted to uphold transaction security, while Korea and Japan are starting to address this issue.
Current limitations on retroactive effect mainly stem from the difficulty of restitution, which raises questions about its legitimacy in contract law.
The possibility of compensating for damages serves as an alternative to retroactive effect, yet establishing liability poses significant challenges.

Mooryung Lee (2025) studied this question.

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