What if the contract cannot be performed due to force majeure due to the epidemic?

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After the outbreak of the new crown pneumonia outbreak, the corresponding outbreak prevention and control measures have caused many enterprises to worry. For the parties who cannot perform the contract due to epidemic prevention, this is a force majeure "unforeseeable, inevitable, and insurmountable" stipulated by law. As disputes over contract performance continue to enter judicial procedures, legal risks can be estimated in advance and force majeure can be proven in accordance with the law, so that enterprises can protect their rights and minimize losses. Whether there is a causal relationship between "the epidemic situation and its prevention and control measures" and "the enterprise cannot perform the contract normally" requires comprehensive analysis and judgment. If there is any dispute between the parties, it can usually be resolved through mediation, litigation or arbitration. Therefore, even if the other party to the contract rejects the force majeure claim submitted by the other party, it is not the final conclusion. The affected enterprises can still protect their rights and interests according to law through continuous negotiation, mediation, litigation or arbitration. Facts have proven to help companies get out of trouble. Not long ago, IRI International E-Commerce Co., Ltd. used the force majeure facts issued by the CCPIT to enable the project to continue to be implemented, redeeming contracts for 14 million yuan, reducing liquidated damages by about 700,000 yuan, and protecting the company's business reputation . Handan Hengyong Protective Cleaning Products Co., Ltd. was listed as the "first batch of designated manufacturers of emergency medical protective clothing" by the material security group of the joint prevention and control agency of the State Council to cope with the new round of crown pneumonia. Products such as immediate return to work, enhanced quality management, and overtime production of protective clothing are shipped to the front lines of epidemic prevention and control. In order to deal with the huge risk of default due to the inability of the company to fulfill export orders, the Hebei Provincial Committee for the Promotion of International Trade issued and mailed force majeure fact proof to the company, which relieved the company's worries. When force majeure occurs, the company has the obligation to notify and prove. “Factual proof of force majeure” means that the China Council for the Promotion of International Trade and its authorized branches have proved facts related to force majeure at the invitation of the applicant. An enterprise can use this evidence to communicate and negotiate with customers, thereby partially or completely exempting the company from its liability for breach of contract due to non-performance, incomplete performance or delay in performing the contract. The risks to the foreign trade enterprises caused by the new measures against crown pneumonia cannot be ignored. Yan Yun, deputy director of the CCPIT Business Certification Center, said that in order to help enterprises effectively deal with the adverse effects of the epidemic and provide more convenient services for enterprises, CCPIT and its authorized branches should prove the relevant facts of force majeure and should apply for certification in the certification. Apply for a certificate on the platform. Through free distribution of force majeure facts related to the epidemic, help enterprises minimize the risk of non-performance of contracts caused by the epidemic and safeguard the legitimate rights and interests of the enterprise. At present, force majeure has been over 200 countries and Regional governments, customs, chambers of commerce and enterprises recognize that it has strong authority and credibility outside the region. As of February 21, a total of 97 commercial certification agencies in the national trade promotion system have issued 3325 relevant force majeure fact proofs, and the contract amount is about 270 billion yuan. At the same time, the China Council for the Promotion of International Trade's Commercial Certification Center reminded that the China Council for the Promotion of International Trade and the local trade promotion agency legally supported the acceptance and issue of force majeure facts. However, what needs to be clear is that the nature of force majeure fact proof is proof of objective facts, rather than exempting the "trump card" of company contracts. The reporter interviewed by the notarized evidence preservation reporter found that although some enterprises have applied to the China Council for the Promotion of International Trade to issue the "New Type Coronavirus Pneumonia Force Majeure Certificate", the force majeure certificate of the China Council for the Promotion of International Trade is limited to international trade and cannot meet the needs of enterprises

Recently, according to the actual needs of enterprises, the Lingnan Notary Office of Foshan City "tailored" a set of "combination punches" for the notarization of force majeure events, that is, "Notice of notarization of force majeure, mail notarization, other notarization notarization," and effectively serve the notarization In the hands of entrepreneurs, urgent needs are resolved. On February 10, Zhengzhou Dayu Notary Office took the lead in opening a green channel for the notarization of force majeure events in Henan Province. On February 12th, the Dayu City Notary Office researched and formulated guidelines for force majeure notarization and contract identification during the epidemic, and introduced convenient measures such as fast online processing, reduction of notarization fees, and opening of green channels for special personnel to help companies solve problems. Hao, president of the China Notary Association, stated that it is necessary to make full use of information technology to carry out notarization business, continue to deepen the "notarization once run" work, and guide the parties to apply for notarization through online, telephone consultation, notification, appointment, and notary mailing. At the same time, it is necessary to strengthen the research and judgment of notarization matters in areas with severe epidemics such as Hubei, to fully understand the demand trends of people's livelihood-related notarization services such as wills, inheritance, and contract performance after the epidemic, and strengthen organizational guidance, take effective measures, and increase support Strength. The Ministry of Justice recently required that enterprises applying for exemption of notarization events such as force majeure events and business statements due to the epidemic situation should promptly open up green channels to help enterprises reduce losses and support and guide notary agencies to actively reduce the notarization service fees of key enterprises in the epidemic. Experts remind that in order to prevent disputes arising from the termination or modification of the contract, the two parties can clarify the rights and obligations of the two parties through a notarized contract, apply for notarization of the agreement for termination or change, and properly resolve the dispute. On February 24, the online filing platform of the Tongzhou District People's Court in Beijing received Ms. Wang's "special" lawsuit. Ms. Wang stated that she signed a one-year lease contract with Ms. Li at the end of December 2019 to lease the house to customers for reception and negotiation. The new crown pneumonia outbreak only occurred one month after the contract was performed. This community is under closed management. The purpose of the contract cannot be achieved and constitutes force majeure. The two sides failed to reach an agreement. As a result, they sued the court for termination of the contract and refunded a total of more than 7,000 yuan in deposits, remaining rent and electricity. Tongzhou court judge Liang immediately contacted the plaintiff, Ms. Wang, to understand the basic situation of the case. At first, Ms. Wang was unwilling to mediate. She believes that the new crown pneumonia epidemic is force majeure, and the community is under closed management and cannot achieve the business purpose of customer reception and negotiation. She has the right to cancel the lease contract and refund the rent. In this regard, the judge patiently analyzed the current situation of epidemic prevention and control, the legal nature and consequences of force majeure, and explained the litigation process and risks. After listening, Ms. Wang agreed to bear some losses and agreed to proceed. Pre-litigation mediation. After obtaining the consent of the plaintiff, Ms. Wang, the judge immediately contacted the defendant, Ms. Li. With the consent of both parties, the two parties were first instructed to download "Beijing Yunting" and carry out online mediation. During the mediation of the case, Ms. Li expressed her confusion. She considers the plaintiff's request for termination to be unfounded. According to the lease agreement between the two parties, the plaintiff must notify the landlord one month in advance of the termination of the contract, which is now in the epidemic period. After the contract was terminated, the house could not be rented out, which would also cause her a lot of losses. In this regard, Liang explained the reasons around whether the disputed contract between the two parties can be cancelled, how the two parties share the losses, and the period of relocation and retirement. In the end, the two sides reached an understanding and reached peace. Ms. Li agrees to terminate the contract and returns Ms. Wang's dep

The judge analyzed whether the new crown pneumonia epidemic prevention and control measures constituted force majeure and whether they constituted the reasons for exempting the contract from termination. This has to do with the duration of the contract, the content of the contract, the extent of the epidemic and the cause and effect relationship. At present, the impact of the epidemic on tourism, transportation, entertainment and other industries is gradually emerging. In this regard, the judge suggested that the two parties communicate and negotiate in a timely manner based on the impact of the epidemic prevention and control measures on the performance of the contract, and in accordance with the principles of fairness and good faith, change the terms of the contract or sign a supplementary agreement to reduce disputes at the source through negotiation.