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Find out moreAs the world faces the COVID-19 pandemic, markets and societies are facing unprecedented challenges. In this very challenging environment, the well-being of people, their workflow, businesses and finances, are all at risk.
Many industrial sectors around the world, including those in Egypt, are encountering instability; people and businesses are faced with high uncertainty about their next steps. In this context, the legal implications for businesses and individuals are becoming more and more important, and a widespread understanding of legal rights and obligations is required across society as a whole.
Al Tamimi & Company is taking a closer look at the challenges facing individuals and corporations in fulfilling their contractual obligations and enforcing their contractual rights in the current circumstances. Five suggestions are offered to help contractual parties consider their options and potential solutions under the overarching principles of.
Al Tamimi & Company, therefore, presents the following guidelines that everyone should take into consideration in order to overcome the current situation on the basis of fairness and reasonableness:
It is conceivable that the epidemic caused by COVID-19 meets the criteria of an unforeseen event, as are the severe measures put in place to control the disease and eradicate it. The World Health Organization declared it as pandemic on March 11, 2020. To an ordinary person, pandemics of this length and severity are exceptional and do not regularly occur. It is clearly a public phenomenon, and one neither foreseen reasonably nor prevented by an ordinary person. This said, treating COVID-19 as an exceptional and unforeseen event does not automatically mean that contractual parties will be excused their performance in any way; all the mentioned conditions must be taken into consideration.
If a party to a contract proves that performance of their contractual obligations has become completely impossible as a result of the spreading of COVID-19, Force Majeure may be invoked for a competent judge to completely terminate the affected party’s obligations and terminate the contract.
Ayman Nour
Partner, Head of Office – Egypt
a.nour@tamimi.com
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