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Quarantine and force majeure

Saturday March 21st, 2020

17.03.2020р. the Law of Ukraine “On Chambers of Commerce and Industry of Ukraine” (in particular Part 2 of Article 14-1) was amended, according to which the fact of quarantine was included in the list of force majeure.

Thus, force majeure circumstances (force majeure circumstances) are extraordinary and unavoidable circumstances that objectively prevent the fulfillment of obligations under the terms of the contract (contract, agreement, etc.), obligations under laws and regulations.

According to the explanations of the Chamber of Commerce and Industry of Ukraine, this does not mean automatic release from liability due to improper performance of obligations, but allows contractors to voluntarily postpone obligations, cancel penalties by concluding additional agreements. In this case, business entities will not need to obtain an additional certificate of force majeure in the CCI of Ukraine.

It is interesting to clarify the impossibility of paying rent due to quarantine. Therefore, the CCI of Ukraine may consider applications for certification of force majeure in case of impossibility for the lessee to use the leased object in connection with the introduction of restrictions or prohibitions at the state level.

In addition, it should be noted that the Chamber of Commerce and Industry of Ukraine and subordinate regional chambers certify force majeure and issue a certificate of such circumstances within seven days from the date of application of the business entity at cost. Such a certificate is issued free of charge for small businesses.

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