Covid-19 coronavirus - force majeure, imprévision/hardship and emergency legislation on contracts under French law in light of the Covid-19 pandemic

A&O Shearman
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The Covid-19 pandemic and its consequences are having a major and sudden impact on economic activities and in particular the conditions in which contracts are being performed. A multitude of scenarii can be envisaged, such as supply shortage, ill or confined employees, governmental measures adopted in response to the pandemic..., which may affect the performance of ongoing contracts and lead to a potential breach of contractual obligations or make such performance excessively onerous.

Whether a party to a French law governed contract may be exempt from performing its contractual obligations and/or from incurring contractual liability in light of the Covid-19 pandemic will depend on whether it can rely on force majeure. Likewise, the question whether ongoing contracts will have to be adapted to the change of economic circumstances resulting from the current health crisis will depend on the possibility to rely on imprévision/hardship.

Please see full publication below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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