Request of application of force majeure in ongoing contracts of small and medium-sized enterprises

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In ongoing contracts (other than rent and utilities) concluded by small or medium-sized enterprises (as defined by law) the force majeure can be invoked against them only after the attempt to renegotiate the contract, to adapt their clauses due to the state of emergency.

Force majeure, within the meaning of the present emergency ordinance, is presumed to be the unpredictable, absolutely invincible and inevitable circumstance that results from an action of the authorities in applying the measures imposed by the prevention and control of the Covid-19 pandemic, which affected the activity of the small and medium enterprise, as such will be attested by the certificate for emergency situation issued by the Ministry of Economy. The presumption may be overturned by the interested party by any means of evidence. The unpredictable character shall be assessed by reference to the moment when the affected legal relationship began.

The measures taken by the authorities in accordance with the normative act establishing the state of emergency will not be deemed unpredictable.

Source: Emergency Ordinance no. 29/2020 regarding fiscal and economic measures, published in the Official Gazette no. 230 on 21 March 2020.

Last update: 4 May 2020

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