Category: Commercial (general contractual issues)

08 Apr, 2020
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Contracts: no exemption from the primary obligation or default interest in extraordinary circumstances

Lately, lawyers and businesses have widely exploited the concept of force majeure. A large number of foreign and domestic legal experts have tendered explanations of this legal institute. In light of the lengthy wrangling on this topic, we believe additional clarification is called for. This should not be a theoretical discussion about whether or not the pandemic and ensuing measures are force majeure because without getting into the nitty-gritty of each and every case there is no one answer fits all. The Contracts and Torts Act is clear when it comes to grounds for exemption from contractual liability for damages. […]

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06 Apr, 2020
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Coronavirus repercussions on Contractual Relationships in Bosnia & Herzegovina

The outbreak of the COVID-19 pandemic prompted the competent authorities to take measures to safeguard public health.  These measures have had repercussions for business in all countries affected by the coronavirus and Bosnia & Herzegovina is no exception.  The main question is whether COVID-19 pandemic can be treated as force majeure and whether it can affect contractual relations.  This is a very complicated question, with no one-fits-all answer and must be examined on a case-by-case basis.  As we have already advised in our article Is Covid-19 a case of force majeure? shrewdness is called for wise when contracting clauses regarding […]

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24 Mar, 2020
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Insolvency, enforcement and notarizing – the COVID-19 implications

Since the escalation of the COVID-19 pandemic and the declaration of the state of emergency in Serbia, many people have been left wondering what this situation means for their everyday life. Should they expect enforcement proceedings to be initiated for that unpaid utility bill? Will parties be able to conclude and solemnize the sale and purchase agreement of real estate? And what about bankruptcy proceedings initiated over a company – will they be able to go on unhindered? These and similar questions are very important for citizens as well as businesses. Luckily, the Ministry of Justice (“MoJ”) anticipated these questions […]

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COVID-19: Compare multiple jurisdictions across the globe with TerraLex

We are pleased to share the TerraLex Coronavirus Business Response Resource Center with you. It is a compilation of business solution resources from TerraLex members, some of the finest and best ranked firms, from around the globe relevant to contracts, labor, business continuity, etc. TerraLex and its members understand that in the rapidly evolving challenges posed by coronavirus and the prospect of recessionary times ahead, businesses are struggling with a variety of issues and looking to their trusted advisors for help. This Resource Center functions just like our cross-border guides. Visitors can select specific topics of interest and specific jurisdictions […]

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17 Mar, 2020
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Covid-19 as rebus sic stantibus – change of circumstance

Will there be anyone to terminate commercial contracts?  We urge caution with unilateral terminations. As the Covid-19 pandemic progresses and increasingly stringent measures are introduced in both Serbia and the EU, this pandemic is gradually morphing into an event of force majeure owing to which commercial contracts simply cannot be executed for reasons beyond the control of the parties. However, a pandemic affects certain contracting parties in commercial contracts in a way that their performance remains in the control of the contracting parties, but the performance of which could practically scuttle their business. What then? How do you withdraw from […]

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13 Mar, 2020
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Is COVID-19 a case of force majeure?

Unfortunately, it is precisely situations such as the COVID-19 pandemic that demonstrate the wisdom of contracting for force majeure and “rules of the game” in the event of force majeure in commercial contracts. In many cases, companies, and lawyers themselves, do not pay attention to these “ancillary” provisions. If any positives can be drawn from the COVID-19 pandemic, then it is the learning that no provision of a commercial contract is incidental or irrelevant, and in particular the force majeure provisions. If your contracts fail to clearly define what constitutes force majeure then you should know the following. Namely, Serbian […]

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