The first is the event which leads to application of the clause, the consequences the event must have on the partie's obligations, and the possible solution for the problem. To apply the hardship clause, hardship must be defined. It must be stressed that the event, which led to the application of the hardship clause must have been unforeseeable for the disadvantaged party. However, the test of reasonableness must be applied. Returning to the German beer case, the court held that the revolution in Iran was not an event that could have reasonably been foreseen by the disadvantaged party.
Some clauses contain a procedural requirement.
If a party fails to give notice of its intention to invoke the hardship clause within a certain time limit, the right expires. It must be noted that the example clause only puts an obligation on the parties to revise the contract but not to achieve a result. As a consequence, the contract continues in effect on its original terms until the parties reach an agreement. Obviously, this is not to the benefit of the disadvantaged party. Therefore, provisions can be found in hardship clauses which provide solutions, e.g., the termination of the contract on failure to reach an agreement or suspension of the contract for a certain period of time.