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Implications of the Corona Pandemic for contracts under German law
In this memorandum, the implications of the corona pandemic for the most common contracts between companies are discussed. The "performing party" is the party who provides the main service (i.e. delivers the purchased goods, performs the works, rents the premises), while the "receiving party" is the party who receives the main service and pays the remuneration.
In the following, the various claims and options for action (damages, rescission, discontinuation of the basis of the transaction, etc.) are first explained in general terms; under Sections 2 et seq., the consequences of this for the individual types of contract (purchase agreement, contract for work and services, commercial agency agreement, etc.) are then clarified by means of examples.
The consequences of the corona crisis on the claims and obligations of the contracting parties depend on the circumstances of the individual case, namely on the agreed contractual clauses. As a result, the outcome of any subsequent litigation is often difficult to predict. However, the following explanations at least make it possible to assess whether one's own legal position is strong or rather weak and how one should act to improve this position. If you know the arguments that strengthen your own contractual position, you can use them to reach an advantageous agreement which is usually more favourable than many years of legal proceedings.
The complete document can be downloaded below.
Implications of the Corona Pandemic for Contracts_BEITEN BURKHARDT.pdf
Matthias W. Stecher
M.C.J., Lawyer, Certified Specialist for Intellectual Property Law, Certified Specialist for International Business Law