Essential performance Failure to comply with the conditions of a condition does not preclude restoration if the contractual obligation has been substantially fulfilled. The courts created this doctrine to prevent confiscation and ensure justice. Insofar as restoration is permitted in the event of essential performance, it is compensated by compensation for damage caused by the non-provision of the full service. The courts determine whether there is a breach of contract or substantial performance of a contract by assessing the objective to be achieved; the excuse of the deviation from the conclusion of the contract; and the cruelty of forced compliance with the treaty. If the deviation from the contract was accidental and resulted in only a slight difference between what the contract required and what was performed, the plaintiff receives only minor damages. In the case of transactions in which goods are sold, Article 2 of the Uniform Commercial Code (CDU) may also excuse compliance. Article 615 of Article 2 provides that performance becomes impracticable either by (1) an event “the incurrence of which was a basic assumption on which the contract was concluded” or (2) “by compliance in good faith with applicable foreign or domestic government regulations or orders, whether or not they subsequently prove invalid”. 13 In general, a party must prove that a party`s ability to evade its performance obligations following a case of force majeure depends on the exact terms of the contract. Courts interpret force majeure clauses restrictively and generally excuse a party`s non-performance only if the contract has expressly defined the event giving rise to the party`s non-performance. 2 Whether a force majeure clause excuses performance in certain circumstances depends to a large extent on whether the specific wording can reasonably be interpreted as encompassing the event invoked by the performing party to excuse non-performance. For example, in One World Trade Center LLC v. Cantor Fitzgerald Securities, the defendants, tenants of the World Trade Center building at the time of the 9/11 terrorist attacks, filed counterclaims against the plaintiff-owner to recover the tenants` advance rent payments that the tenants had made prior to the destruction of the World Trade Center building by the tragedy of 9/11.3 However, the lease included a force majeure clause, which expressly exempted the plaintiff-owner from the performance of his obligations for reasons or conditions beyond his control, including “force majeure”. War.

and acts of third parties for which the [claimant in the interest] is not liable. 4 Referring to the general rule that `it is only if the force majeure clause expressly covers the event which effectively prevents the performance of a party that that party is excused`, the court concluded that the wording of the force majeure provision expressly protects the claimant against acts of third parties (terrorists who destroyed the building). 5 Violation of Conditions Compliance with a condition may be excused in certain circumstances. If the facts excuse the fulfillment of a condition, they usually also excuse the fulfillment of a promise. An excuse for non-compliance with a condition can exist in many forms, . B such as a waiver (the intentional waiver of a known right) to fulfill the condition. A subsequent condition is one that, if it exists, terminates the obligation to perform or pay under the contract. For example, suppose an insurance contract states that the lawsuit against it for a claim covered by the policy must be commenced within one year of the insured`s loss. If the destruction of the insured`s immovable by fire presents a risk covered by the policy, the insured must bring a lawsuit against the insurer within the time limit, otherwise the subsequent condition terminates the company`s obligation under the policy. In practice, if you are a party to the contract whose performance has been disrupted by COVID-19, you should review the contract to determine: In light of the above, the decision whether COVID-19 constitutes a case of force majeure that releases part of its contractual obligations will determine the exact language used in the provision and events, that he is trying to anticipate.

Broad language, such as “force majeure,” may well be broad enough to encompass COVID-19. More precise formulations such as “epidemic”, “pandemic” or “disease” provide a more solid basis for declaring COVID-19 to be a force majeure event. Regardless of this, the party wishing to invoke the force majeure event must also prove a causal link between its non-performance and the force majeure event in question – in this case COVID-19. The first step for anyone tasked with assessing their company`s rights and obligations under a contract is to determine whether the contract contains a force majeure clause. Literally translated as “force majeure”, contractual clauses on force majeure identify events beyond the reasonable control of a party and thus prevent a party from fulfilling its contractual obligations. If any of these events occur, the force majeure clauses will result in non-performance by a contracting party. Common events listed in the force majeure clauses include force majeure, acts of the federal or state government, epidemics, quarantines, acts of terrorism, extreme weather events, labor disputes, or other events beyond the reasonable control of the parties.1 Types of conditions Precedents, conditions at the same time, and subsequent conditions are types of conditions often found in contracts. A condition precedent is an event that must be present as a fact before the promising person takes responsibility for it. .