Coronavirus and Force Majeure

Due to the restrictive measures taken by the government and local governments related to the spread of COVID-19, national companies are massively preparing policies and decisions on working and doing business in the new environment.

The impact of the epidemic on the business and its possible consequences are obvious, so we have legal advice on the further possible recognition of these circumstances as force majeure.

As rightly stated on the website of the Chamber of Commerce and Industry of Ukraine, “the terms of the contract, as a rule, include provisions on force majeure with a list of facts that the parties recognize as such, and the legal consequences of its occurrence.

The presence in the list of events such as “epidemic”, “emergency”, “restrictive actions of the authorities” strengthens the position, but the party must still prove that the coronavirus or measures taken to combat it at the state level are force majeure.

?The documents provided by the applicant to certify force majeure must indicate:

– urgency of such circumstances;

– unpredictability of circumstances;

– inevitability;

– a causal link between the circumstance/event and the applicant’s inability to fulfill their specific obligations.”

?Given the specifics of the forms of inquiries to the CCI of Ukraine, further proof of the circumstances of each specific case, we recommend to:

1. Prepare draft amendments to agreements (contracts) with contractors with a clear reference in the section of Force Majeure on COVID-19. Organize their signing.
2. In case of circumstances of impossibility of fulfillment of contractual obligations due to the epidemic or its consequences, take actions aimed at informing the contracting party.
3. Consolidate evidence of correspondence, warning the contracting party in an appropriate manner (with evidence of sending).
4. Accept necessary orders for the company, make changes to compliance policies.
5. Submit documents for obtaining a certificate from the CCI of Ukraine or its regional offices.

According to the Regulations, force majeure circumstances are certified at the request of business entities and/or individuals under each individual contract, a separate tax and/or other obligation, the fulfillment of which occurred in accordance with the terms of the contract, agreement, legislative or other regulations, and the implementation of which became impossible due to the presence of such circumstances.

If you need legal assistance in preparing documents, orders, policies, obtaining certificates, we accept requests at:

info@kac.com.ua

067 828 33 92