COVID-19 AND THE FORCE MAJEURE CLAUSE IN COMMERCIAL CONTRACT IN ITALY

As Covid-19 spreads around the world, companies are questioning their ability to perform contracts and fulfill their obligations.

For instance, performance may be impossible for companies subject to the Italian DPCM 22 March 2020 and, even in countries where a complete lock down has not been implemented, companies may find it difficult to perform their obligations due to logistic problems or supply shortage. The same may occur to companies that have freely decided to stop production in order to protect their workers.

In this context, what relief can companies seek? Can companies invoke a force majeure event to excuse their non-performance? Can companies legitimately terminate a contract executed before the pandemic? 

As to contracts currently under negotiation, what clauses shall be included to prevent future risks deriving from Covid-19 or similar crisis?

The law firm has created a working group to support companies during this exceptional event.

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Studio Legale Santosuosso Avvocati Lexcom