The Effect of Force Majeure Caused by the COVID-19 Pandemic on Contractual Obligations

Abstract

As known as the global epidemic of a phenomenon, a pandemic can directly affect economic relations. Pandemics can create conditions of force majeure and make it impossible to fulfill contractual obligations. Some various solutions are present for contractual relationships in legal systems that are affected by force majeure conditions. The first question is whether the pandemic of COVID-19 can be considered a force majeure condition or not; what will happen to the contractual obligations of individuals, especially companies, if COVID-19 is a force majeure agent? Undoubtedly, the solutions provided in the laws can greatly reduce the problems facing companies. The possibility of termination, modification, discharge, and severability of the contract is the most well-known and most common legal solution before the obligor and the obligee in the face of violation of obligations due to force majeure.