In the context of the COVID-19 pandemic, most of the concluded contracts are likely to be modified in order to cope with the general situation.
Thus, cases of payments delay or difficulties in making payments will arise as soon as possible. Consequently, the execution of a significant number of contracts will become excessively burdensome for one of the parties, and the latter will appeal to the institution of the force majeure.
- GOVERNMENT MEASURES
- Postponement for the payment of rents due for the headquarters or secondary establishments for SMEs and other categories of entities such as notaries, lawyers, or dental practice;
- Postponement of utilities payments: payments for water, telephone services, electricity or natural gas, for SMEs and other entities such as notaries public or lawyers, or dental practice;
- The penalties stipulated for delays in the execution of the obligations arising from the contracts concluded with the public authorities are not due for the duration of the state of emergency.
- The Emergency Certificate will be issued free of charge to the companies affected by the coronavirus situation COVID-19, by the Ministry of Economy, Energy and Business Environment in order to benefit from state support, this document being distinct from the Force Majeure Certificate, issued by the Chamber of Commerce and Industry of Romania, respectively by the County Chambers, according to a standard procedure.
- FORCE MAJORE CALL
By the Emergency Ordinance 29/2020 the Government has ordered that a derogation from the provisions of the Civil Code on the ongoing concluded contracts by Small and Medium Sized Enterprises is necessary and stated that the force major could be invoked only after the attempt of the parties to adapt the contract in the context of the present state of emergency.
The mentioned Ordinance of Emergency estimates that the payment obligations will become due when the state of emergency is over.
However, in order to benefit from the listed measures, the entities need to be directly affected by the measures taken by the public authorities.
For example, in principle, if the leased establishment can still be used without any particular dysfunction, the lessee is bound by the obligation as before the appearance of the pandemic. However, if there are cases of infected people with the Coronavirus in the establishment, the landlord may invoke force majeure.
Nevertheless, in order to be able to successfully invoke force major, the obligation must not have become due before pandemic situation, or the debtor did not received notice of default before.
Team BCHLAW
Bucharest 25/03/2020
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The Law Firm ”Christian Bogaru” (BCHLAW) is an international law firm, being ranked amongst the 30 most renowned Law Offices in Romania, having an established experience in International Business Law, with internationally trained lawyers that have a vast and sustained experience in different legal fields, essential for starting, developing, operating a business in Romania and in Eastern Europe. The Law Firm ”Christian Bogaru” has strong assets, such as Romanian and Francophone lawyers, proficient speakers in English, with legal qualification in several European jurisdictions, consolidated legal expertise in several fields of law (corporate law, labour law, mergers and acquisitions, taxes, real estate, transport, criminal business law, GDPR etc.) assisting and representing foreign and Romanian companies of all sizes and reputations ( Multinationals, SMEs, etc.)
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