Q&A Section On Covid19 And International Contracts - Operational Impacts and Strategy

INTRODUCTION

1. SUPPLY CONTRACTS CONCLUDED IN THE FRAMEWORK OF DISTRIBUTION AND/OR FRANCHISE AGREEMENTS.

1.1 Are the COVID-19 pandemic and all consequences deriving from it "force majeure" in the view of the agreement and/or statutory law?

AUSTRIA, BELGIUM, CHINA, COLOMBIA, CROATIA, CZECH REPUBLIC, DENMARK, EGYPT, FINLAND, FRANCE, GERMANY, ISRAEL, ITALY, MEXICO, MOROCCO, MOZAMBIQUE, NEW ZEALAND, NORWAY, PAKISTAN, POLAND, PORTUGAL, ROMANIA, RUSSIA, SAUDI ARABIA, SLOVENIA, SPAIN, SWEDEN, SWITZERLAND, THE NETHERLANDS, TURKEY, UK, URUGUAY

1.2 What are the legal consequences of a delayed delivery due to the COVID-19 pandemic?

1.3 Can a customer refuse to take delivery (and consequent payment) if he no longer needs the ordered goods due to a Government lockdown or due to his strategic decision to close his shop, or to other circumstances (e.g. seasonable goods)?

1.4 What are the consequences of not reaching minimum sales or minimum quantities due to the Corona pandemic?

2. FRANCHISING CONTRACTS.

2.1 Do (master)franchisees have to pay royalties during the pandemic? What would be the impact on minimum royalties or other fees (e.g. IT, marketing fees) possibly provided for in the franchise agreement?

2.2 Do tenants of commercial premises have to pay rent if the commercial establishment has been closed by order of the State?

3. COMMERCIAL AGENCY CONTRACTS.

3.1 Can the Covid-19 outbreak affect the commercial agent's entitlement to goodwill indemnity or the amount thereof? If yes, to what extent?

3.2 If the principal gives the termination notice during the lockdown period ordered by the Government, is the notice effective during the lockdown?

3.3 Is the commercial agent's entitlement to the agreed commission affected by the cancellation of already confirmed orders by customers due to the pandemic?

AUSTRIA, BELGIUM, CHINA, COLOMBIA, CROATIA, CZECH REPUBLIC, DENMARK, EGYPT, FINLAND, FRANCE, GERMANY, ISRAEL, ITALY, MEXICO, MOROCCO, MOZAMBIQUE, NEW ZEALAND, NORWAY, PAKISTAN, POLAND, PORTUGAL, ROMANIA, SAUDI ARABIA, SLOVENIA, SPAIN, SWEDEN, SWITZERLAND, THE NETHERLANDS, TURKEY, UK, URUGUAY

4. FINAL GENERAL QUESTIONS.

4.1 Is there any rule issued specifically with reference to Covid-19, which is relevant for the international contracts mentioned above? Are States issuing certificates of force majeure?

4.2 For the new agreements that are going to be entered during the emergency and after what kind of issues should be considered due to the fact that from now on a situation like the COVID-19 pandemic and the consequences for global trade are now well known and to some extent predictable to the parties of any sales transaction?

4.3 Is there any other general recommendation that the affected parties could take into account in order to minimise the impact of this situation?

To see the full article click here

Originally published Apr 30, 2020.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Russian Federation: Q&A Section On Covid19 And International Contracts