Paragraph 18.1 [Extraordinary Events] of FIDIC Yellow and Silver Books also contains a non-exhaustive list of events and circumstances that could constitute a case of force majeure or exceptional event. Although the “pandemic” is not mentioned12, this does not exclude the possibility of exemption from eneroben violence when the performance of COVID-19 is compromised, provided the event complies with the general requirements of the clause. Payment obligations payable are not excused by force majeure clauses or exceptional events. A party wishing to invoke the clause must inform the other party of events or circumstances that constitute a case of force majeure and indicate the obligations for which performance is prevented.13 Discharge in the event of the application of the force majeure clause or exceptional events is generally limited to time extensions (i.e. no renewal fees), with the exception of the events listed in the corresponding provision. In addition to The Force Majeure, a contractor may also consider relying on other provisions of the contract for delays due to government authorities.14 See all Google Scholar quotes for this article. The question of whether the rebus sic stantibus clause applies to a given situation requires a case-by-case analysis of the circumstances of the contract22.22 It is important to note that the case law establishes a very high level which, in most cases, will be difficult to meet. The finding of the rebus sic stantibus implies that the reason for the conclusion of the contract disappears, because the economic motive of one of the parties is thwarted or becomes inaccessible to one of the parties.23 A court may modify the obligations agreed by the parties to rebalance the obligations and benefits of the parties to the contract or terminate the contract for the benefit of the unaccompactic party 24 , if the parties were unable to agree on an agreement, if the parties were unable to agree on an agreement, if the parties were unable to agree on an agreement, if the parties were unable to reach an agreement , a price review within six months. These gas price review clauses are intended to ensure that gas prices are flexible in gas sales and sales contracts and that they can be adapted to changes in circumstances that affect the underlying economic balance of the merger. The hardening clauses are intended to protect the parties from events that fundamentally alter the balance of the contract and to make the performance of the contract much less profitable for a party.16 Contracts for the sale and sale of LNG generally establish a contractual formula used to calculate the price of oil. However, a sharp decline in oil demand, due to travel restrictions and a contraction in economic activity, has led to an unprecedented drop in oil prices, in addition to geopolitical tensions.
While the duration of the change in the value of oil is not yet known, it shows the need to put in place price adjustment mechanisms to protect against potential losses resulting from changing circumstances. If a party`s ability to meet a contractual obligation has been compromised by COVID-19 or in response to the actions taken by the state in response, the first step is to review the terms of the contract to determine whether a provision can apply to discharge liability in the event of non-compliance with force majeure or altered circumstances4. such claims are seized. In the event that the contract does not contain a specific provision regulating force majeure or cases of severity, a party may take care of the protections offered by the applicable law of the contract. Spanish law protects parties whose performance of the contract has been hampered by a case of force majeure, impossibility and change of circumstances (rebus sic stantibus).