The health COVID-19 crisis has become the most common excuse for breach of contract. And pretty much for everything else going wrong in the world. People are using the coronavirus situation as an excuse to justify delays and other failures to comply. But keep reading because it is not a perfect magic card that everyone can use for everything.
Yes the COVID-19 is a worldwide health crisis considered as a mayor event that could affect compliance of obligations as agreed in a contract. We all know this to be a common true in today’s global economy and interconnected world.
However, not all mayor events automatically exonerate all debtors from their obligations in the event of breach of contract.
Although the COVID-19 virus is new, the effects of crisis in legal compliance are not new at all. Natural disasters and man-made catastrophes have been affected our societies many times throughout thousands of years.
Therefore, our legal systems have already established general criteria to consider when someone is unable to comply with their contractual obligations due to an extraordinary (force majeure) situation.
Most likely, your contract already includes a clause indicating the process that will apply in the event of emergency. If it does not include it, then the general standard of law would still apply.
Tip: the standard is high. You have to prove that the COVID-19 crisis forced the breach of contract. That is, that the crisis created the situation that made impossible that you could comply with the obligations as agreed in the contract.
This means that a mere inconvenience is not enough to released someone of their contractual obligations. The general COVID-19 crisis is also not enough to automatically exempt you related to the breach of contract. I am referring of course to the legal consequences that could be triggered by a failure to comply, such as penalties and damages.
So now you know. If it is possible, do comply with your obligations, even if it is difficult. And if you can, renegotiate the terms of your contract. Because otherwise, you could be declared in breach of contract. If your creditor is able to prove that the force majeure exemption was not applicable to you personally.
On the other hand, there are some people trying to use the COVID-19 crisis as an excuse to get away with breach of contract. But now you know the legal standard that could protect your rights.
An attorney at law can guide you on how to apply this valuable information to your situation and defend your interests. You may contact us to request a private consultation.
Meanwhile, take advantage of the great business opportunities available. But do it with the safety of your Mexico Real Estate attorney, that can help you to protect your dealings in Mexico.
Subscribe to our bulletin and receive great tips in your e-mail.
Disclaimer: This article does not provide legal advice. It is for information purposes only. Receiving, viewing, sharing or using this information does not constitute an attorney-client relationship nor it substitutes the need of professional legal advice.