scholarly journals THE COVID-19 PANDEMIC – AN IMPEDIMENT IN PERFORMANCE OF CONTRACTS

Author(s):  
Mohammed Zaheeruddin

The COVID-19 pandemic has created unprecedented situation all over the world, ocmpelled the governments to declare lockdown, closing of businesses, industries, commercial activities, ban on certain imports and exports. Under these circumstances, an obligor may not be able to perform his contractual obligations, consequently may result in breach of contract. In case of claim of damages by the obligee for breach of contract, the obligor may seek exemption from damages under the law of impediment or force majeure. According to Article 79 of the UN Convention on Contracts for the International Sale of Goods 1980 (CISG), a party is not liable for damages due to non-performance, delay or defect in performance, if he can prove that the failure was due to an impediment beyond his control. The COVID-19 situations are beyond the control of the parties to the contract, must be considered as an impediment or force majeure and the non-performing party is entitled for exemption from damages under Article 79 of CISG.

2020 ◽  
pp. 1-20
Author(s):  
Abdullah A. Abdullah

Abstract This article examines challenges and proposes legal solutions for the enforcement of contracts especially after the transformation of the economy following Covid-19 and related governmental measures that have swept throughout the world since December 2019. Maximising the role of the judge and increasing the contractual parties’ involvement in phases of contractual disputes constitute the core of this research. This article argues for strengthening the contractual guarantees by advocating for the use of the two contract doctrines of force majeure that normally lead to termination of contractual obligations, and changed circumstances that may trigger intervention of the judge to lift the economic burden of the debtor and reach a fair solution. This article also argues for adopting a more flexible approach to the application of the doctrine of change of circumstances during the performance of the contract that not necessarily relies on this traditional distinction between force majeure and hardship.


2021 ◽  
pp. 467-492
Author(s):  
Robert Merkin ◽  
Séverine Saintier ◽  
Jill Poole

Course-focused and comprehensive, Poole’s Textbook on Contract Law provides an accessible overview of the key areas on the law curriculum. In general terms non-performance constitutes a breach of contract. The contract may have expressly allocated the risk of certain external events which occur after the contract is made to one of the parties by means of a force majeure clause. The terms of this clause will determine the parties’ positions if the event in question occurs. In the absence of an express allocation of the risk, the frustration doctrine is a residual doctrine that governs when such frustrating events intervene, without the fault of either party. These frustrating events relate to impossibility, illegality or frustration of the common purpose of both parties. This chapter examines the legal basis of the frustration doctrine, when it applies, when it does not apply and the legal consequences of frustration on the parties’ positions. Frustration automatically terminates the contract for the future and, where it applies, the provisions of the Law Reform (Frustrated Contracts) Act 1943 govern the parties’ pre-existing legal position.


Author(s):  
Ammar Shakier Mahmood ◽  
Ahmed Safaa Yahya Al Khateb

This pandemic Covid-19 or Corona virus is an urgent foreign cause to the whole world, including the parties to the contractual relationship who had no hand in the occurrence of that pandemic and are not able and able to avoid their effects, regardless of the efforts they have made in that. Mostly (a foreign force majeure led to obstructing the implementation of the obligation and making the debtor’s implementation of his obligation impossible. Through this, the researcher aims to explain the effect of this adaptation on contracts. The researcher committed to his research in the comparative descriptive approach in explaining the concept of the pandemic from a linguistic standpoint and its effects on commitment in general and contractual in particular And the researcher reached to impart the proper legal adaptation of the pandemic to which most of the countries of the world as well as the French judiciary go, which is that the pandemic "covid 19" arising from the spread of the Corona virus is a foreign reason that represents a force majeure that prevents the debtor from carrying out his commitment and makes its implementation of his commitment impossible.


2021 ◽  
Vol 7 (4) ◽  
pp. 60-68
Author(s):  
Hardi Tofiq Mustafa

The Corona pandemic that the world is experiencing is one of the most prominent global disasters today, and has become the subject of great interest from all countries of the world, especially since its effects were not limited to the health aspect only, but extended to the economic, legal, political and social aspect in the lives of individuals, which has resulted in countries entering into conflict with this pandemic by taking a set of preventive measures to combat its spread, and perhaps the most important of these decisions was the imposition of home quarantine on citizens and forcing social distance, in addition to terminating many commercial activities, , which leads to make the implementation of commitments almost impossible.  This research aims at determining the legal nature of the Corona pandemic, and whether it can be considered as a force majeure, or is it just an emergency? What is the impact of this pandemic on the deadline for submitting commercial papers for acceptance and fulfillment? Is the legal holder of the commercial transfer, who was not able to submit it for acceptance and fulfillment within the deadlines, considered a negligent holder? Or force majeure can apply here?


2021 ◽  
Vol 15 (1) ◽  
pp. 1
Author(s):  
Khaled Abed Alshakhanbeh

The spread of the Corona virus and the closure of borders and the ban on travel and commercial bodies in companies, which resorted to many commercial activities, relying on a large scale, e-commerce, tourism in that, commercial relations, as a result of the inability to fulfill their contractual obligations, which led jurists to rely on the theory of emergency conditions to explain the impossibility or difficulty of fulfilling the obligations of the contractors on the terms of contracts, and as a result of the occurrence of many contractual problems, the affect of a virus on the capacity of contractors to fulfill their obligations. This article aims to analyze the impact of the spread of the virus on contractual obligations by relying on the force majeure theory, and the position of jurists on using this theory in explaining the impact of the spread of this epidemic on the ability of the contracting parties to fulfill their obligations. The researcher has come out with a set of results, the most important of which is that the new Corona virus can be considered an obstacle or a force majeure, based on what was stated in the contents of the provisions of the relevant bodies, and this will have legal and economic implications for the contractual obligations of the various international commercial contracts.


1998 ◽  
Vol 28 (3) ◽  
pp. 527
Author(s):  
Friedrich K Juenger

The states of the European Union have so far concluded two major conflict of laws conventions:  The Brussels Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters, and the Rome Convention on the Law Applicable to Contractual Obligations.  Professor Juenger here reflects on the creation and experience of these treaties and concludes that the Brussels/Lugano Conventions present a model for the world while the Rome Convention shows what to avoid.


2009 ◽  
Vol 14 (1) ◽  
pp. 99 ◽  
Author(s):  
Christopher Kee ◽  
Edgardo Munoz

In this article, the authors respond to certain criticisms made against the 1980 Vienna Convention on Contracts for the International Sale of Goods (the ‘CISG’) and explain what they perceive as the shortcomings of, and impediments to, a particular model of a proposed new global code. A goal of both the CISG and the proposed global code is to create an environment which promotes international trade. Predictability in the law is a fundamental element to achieve such an environment. The CISG has been criticised as failing to provide such predictability. It has been suggested that it has not been uniformly interpreted, contains internal inconsistencies and allows countries to establish varying mini-codes. While there may be some merit in some of these criticisms there is also much that is overstated and wrong. The CISG may not be a perfect instrument. However, it has been widely accepted and that alone makes it a strong basis from which to develop. A global code applied with absolute uniformity throughout the world might provide predictability. However, such a uniform law is unrealistic and, in any event, undesirable. The authors propose a more realistic solution. The law should be the framework upon which individually nuanced contracts could be built. Predictability is obtained by developing and establishing avenues of communication. It is also obtained by developing and establishing means of explaining and understanding the concepts upon which the framework has been built. The CISG allows for all of this.


2020 ◽  
Vol 7 (3) ◽  
pp. 52-80
Author(s):  
S. Khanderia

The outbreak of COVID-19 has severely impacted the performance of contracts across the globe. In some situations, the outbreak may render the performance of contracts impossible as a result of governmental restrictions in the form of national lockdowns to curb the spread of the virus. In other situations, the pandemic may adversely impact the execution of contractual obligations by dramatically affecting the price of the performance and, thus, resulting in hardship or commercial impracticability, while in certain situations the pandemic may be legally construed to not affect the performance of a contract. In domestic contracts, the consequences of such non-performance would depend on the principles of national law. In comparison, agreements with a foreign element (international contracts) are likely to increase the complexity of deciding claims arising from the non-performance of contracts due to the COVID-19 outbreak. The rights and liability of the parties would chiefly depend on the law that will govern the agreement – which differs across the globe. Some contracts would include a force majeure clause to exonerate the parties from performance on the occurrence of an event such as a pandemic. The courts’ interpretations of such force majeure clauses similarly differ across the globe. The laws of some countries would excuse the parties from performing their contractual obligations even if the pandemic resulted in hardship. Others would strictly construe the terms of such clauses and would invalidate them if the occurrence of the pandemic did not make the performance impossible. This paper examines the non-performance of transnational contracts due to the COVID-19 outbreak when they are governed by Indian law. It highlights the situations when an international contract for the sale of goods or services whose performance has been allegedly hindered due to COVID-19 would (a) frustrate and (b) breach the agreement under Indian law. The paper provides a comparative analysis of Indian law with jurisdictions such as France, Germany, Austria, China, the United Kingdom, Australia and the United States to demonstrate that Indian law is not well equipped to deal with complex lawsuits arising due to the non-performance of contracts as a result of the pandemic.


2016 ◽  
Vol 9 (10) ◽  
pp. 126
Author(s):  
Ali Zareshahi

<p class="cc">In order to discourage people from breaching a contract and also to compensate the injured party for any losses, the law provides several remedies for breach of contract. One of these remedies is price reduction. In this study, we aims to compare the rules of Iranian law for price reduction remedy with those provided by Convention on Contracts for the International Sale Of Goods (CISG), and English law. English law has set detailed rules for rewarding damages for breach of contract , while Iranian law has generally-defined rules. The legislator has not determined not only the types of damage, but also the criteria for assessment of the damage. The remedies provided for price reduction in the CISG for breach of contract has been adapted to requirements of international trade, while In Iranian law there is no clear rules for this purpose, except three rules including a) Giving property to the buyer instead of money, (b) Compensation for loss of legitimate business involved to the buyer, and (c) Compensation for delayed payment to the buyer.</p>


Author(s):  
Robert Merkin ◽  
Séverine Saintier

Course-focused and comprehensive, the Textbook on series provides an accessible overview of the key areas on the law curriculum. In general terms non-performance constitutes a breach of contract. The contract may have expressly allocated the risk of certain external events which occur after the contract is made to one of the parties by means of a force majeure clause. The terms of this clause will determine the parties’ positions if the event in question occurs. In the absence of an express allocation of the risk, the frustration doctrine is a residual doctrine that governs when such frustrating events intervene, without the fault of either party. These frustrating events relate to impossibility, illegality or frustration of the common purpose of both parties. This chapter examines the legal basis of the frustration doctrine, when it applies, when it does not apply and the legal consequences of frustration on the parties’ positions. Frustration automatically terminates the contract for the future and, where it applies, the provisions of the Law Reform (Frustrated Contracts) Act 1943 govern the parties’ pre-existing legal position.


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