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Aim<\/strong> : not to be held liable in the event of nonperformance and\/or to invoke suspension or termination of the agreement (with restitution where appropriate).<\/p>\n

Definition <\/strong>: contractual or legal, provided that it must be an event :<\/p>\n

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beyond the control of the debtor ;<\/li>\n
which could not reasonably have been foreseen at the time of the conclusion of the agreement ;<\/li>\n
the effects of which cannot be avoided by appropriate measures ;<\/li>\n
preventing performance of the contractual obligation.<\/li>\n<\/ul><\/div><\/div>\n
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Execution has become \u00ab\u00a0unprofitable\u00a0\u00bb\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Contingency<\/span><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
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Aim<\/strong> : obtain a renegotiation (revision or adaptation of the agreement) or resolution of the agreement.<\/p>\n
Definition<\/strong> : contractual or legal, providing three cumulative conditions:<\/p>\n
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the need for a change in unforeseeable circumstances at the time of the conclusion of the agreement;<\/li>\n
a change which makes the performance of the contract excessively onerous;<\/li>\n
that the Party affected by the change in circumstances has not agreed to assume the risk.\u200b<\/li>\n<\/ul>\n
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Warning points<\/span><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
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The force majeure<\/strong> :<\/p>\n
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Force majeure can be difficult to characterize (complex legal concept);<\/li>\n
The contract may provide for the treatment of force majeure;<\/li>\n
In case of failure to provide this, the legal consequences (suspension or termination of the contract) depend on its effects.\u200b<\/li>\n<\/ul>\n
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\u00a0The Unforeseeability :<\/strong><\/p>\n
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The possibility of invoking unforeseen circumstances may depend on the date of conclusion of the contract (before or after 1st October 2016);<\/li>\n
Unforeseeability can be difficult to characterize (complex legal concept);<\/li>\n
The contract may provide for the treatment of the unforeseen event or even exclude it;<\/li>\n
Failing this, the treatment of the contingency may, in the absence of amicable renegotiation, require the intervention of a judge who will revise or terminate the contract.<\/li>\n<\/ul><\/div><\/div>\n
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Situation 2 : What to do if you are waiting for the delivery of a good or the performance of a service that does not take place ?<\/h2>\n
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Compulsory execution (obtaining the intended execution) <\/strong><\/p>\n
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Either by enforcing the penalty clause of the contract if one is stipulated;<\/li>\n
Or by asking the Court for an injunction, under penalty payment, against the other party, to have to perform;<\/li>\n
Or by having a third party to do so, at the expense of the other party.<\/strong><\/li>\n<\/ul>\n
Termination of the contract (release from the contract, necessity of a serious breach of contract)<\/strong><\/p>\n
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Either by enforcing the termination clause of the contract if one is stipulated;<\/li>\n
Or by a simple notification to the debtor;<\/li>\n
Or by taking it to Court (longer).<\/li>\n<\/ul><\/div><\/div>\n
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Compensation for the consequences of nonperformance (damages)<\/strong><\/p>\n
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Either by invoking the penalty clause of the contract if one is stipulated;<\/li>\n
Or by taking the defaulting party to Court (longer).<\/li>\n<\/ul>\n
Suspension of one’s own obligations (plea of nonperformance)<\/strong><\/p>\n
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By refraining from performing for the time of the other party’s default.<\/li>\n<\/ul>\n
Price review<\/strong><\/p>\n
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By requesting, after a formal notice, if and when performance has taken place, a change in the price in proportion to the poor performance (delay, quantity or quality).\u200b<\/div><\/div><\/li>\n<\/ul>\n
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Warning points<\/span><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
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The choice between treatment modes<\/strong><\/p>\n
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Compatible treatment methods may be combined (e.g. resolution + damages, enforcement + price review);<\/li>\n
The choice between the treatment methods depends on different criteria (expectations of the contracting party, prospects of execution by the other party, risks associated with the treatment method, etc.);<\/li>\n
The possibility of invoking certain mechanisms may depend on the date of conclusion of the contract (before or after 1st October 2016).<\/li>\n<\/ul>\n
Conditions to be met<\/strong><\/p>\n
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The implementation of certain mechanisms requires a serious breach ;<\/li>\n
Some mechanisms require prior formal notice (resolution, price review, implementation of liability);<\/li>\n
Certain mechanisms are implemented at the risk of the contracting party (unilateral termination, exception of nonperformance).<\/li>\n<\/ul>\n
Barriers<\/strong><\/p>\n
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The other party may invoke force majeure or unforeseen circumstances ;<\/li>\n
The co-contractor may also be subject to restructuring and insolvency proceedings likely to paralyse the mechanisms involved.<\/div><\/div><\/li>\n<\/ul>\n
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Download<\/p>\n
French<\/a><\/p>\n
English Version –> Covid-19 & Contract law: How to react in contractual relations?<\/a><\/p>\n
La versi\u00f3n espa\u00f1ola –> Covid-19 & Derecho de contratos : C\u00f3mo reaccionar en las relaciones contractuales ?<\/a><\/p>\n
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