Change and termination of the agreement in case of force major circumstances due to the pandemic

Abstract

Force majeure can cause a significant change in circumstances, which is the basis for termination or change of the contract, and,ultimately, leads to the termination of the obligation (its termination) or the preservation of the obligation in a modified form. Legalregulation of the legal consequences of a significant change in the circumstances that exist at the conclusion of the contract is usuallybased on one of two key principles of contract law: the principle, according to which contracts must be performed (pacta sunt servanda), or clause (clausula rebus sic stantibus). The legislation of foreign countries contains rules, according to which “a change of circumstancesmay justify a change in the contract, when the preservation of the contract in its original form leads to extraordinary results,incompatible with justice”. The main consequences of a significant change in the circumstances that guided the parties in concludingthe contract are:– actually change the contract, ie change the terms of the contract (and as a consequence – the obligations between the parties)while maintaining the contract in force;– and termination of the contract by agreement of the parties.If the parties do not agree to bring the contract in line with the circumstances that have changed significantly, or to terminate it,the contract may be terminated on the grounds, established by the Central Committee of Ukraine, amended by a court decision at therequest of the interested party: at the conclusion of the contract the parties proceeded from the fact that such a change of circumstanceswill not occur; the change of circumstances is due to reasons, which the interested party could not eliminate after their occurrence withall the care and diligence, required of it.Today, in our country, as in many countries around the world, there is a situation that makes it impossible to fulfill the contractualobligations related to the introduction of national quarantine in connection with the pandemic of coronavirus (COVID-19). The governmentof our state has also resorted to resolving the situation with the introduction of quarantine on the territory of Ukraine.