Analysis of The Situation Caused by The Outbreak of Coronavirus Under the Justifiable Impediments for The Non Performance of Contractual Obligations

Document Type : Original Article

Authors

1 Phd Student of Private Law, Shahid Beheshti University, Faculty of Law

2 PhD Student of International Law, Faculty of Law, Shahid Beheshti University

Abstract

After concluding the contract correctly, the most important discussion in the stage of effect, is the category of "performance". The contracting parties are required to perform their contractual obligations in accordance with the rule of Pacta sunt servanda; However, it sometimes happens that one or both parties, due to the occurrence of an impediment, cannot fulfill its obligations (Force Majeure) or it becomes very difficult for them to fulfill such obligations (Hardship). Force Majeure and Hardship are considered as an excuse in the performance of contractual obligations which justifies non-performance of obligations. One of the examples of excuses for non-performance of the contractual obligations is the spread of infectious diseases; a special type of which is now known worldwide as "coronavirus". Given the differences in the nature and effects of the two above mentioned justifiable impediments, it is necessary to determine exactly which of these two impediments could be justified the legal issues which raised due to coronavirus. Considering the similarity of the components and the result of the outbreak of this disease with the criteria of Hardship, the existence of similar judicial cases and also the principles governing the interpretation of contracts, it seems at first glance that the situation caused by coronavirus is one of the examples of Hardship.

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References

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Legal Research Quarterly
Volume 23, LAW and COVID- 19
September 2020
Pages 459-487

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History

  • Receive Date: 20 June 2020
  • Revise Date: 29 July 2020
  • Accept Date: 02 September 2020

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