Is COVID-19 an excuse for Non-Performance and Non-Enforceability of Business Contracts? – Answers with Economic Analysis from Brazilian Perspective

– Lucas Bento & Matheus Scussel

The spread of the COVID-19 has been impacting the dynamics of many businesses. Since there is no concrete solution to the disease by the present moment, governments all around the world have adopted social distancing as the strategy to avoid major impacts on their health system, which appears to be the most coherent plan to be followed given the situation.

However, this policy involves the suppression of different economic activities, since most stores had to suspend physical operations, borders had to be closed and almost all events that would gather a large amount of people had to be either cancelled or postponed. Due to these new circumstances, the performance of contractual obligations of many kinds can become impossible or at least extremely hard to be executed by now.

To read about contractual impacts of COVID-19, read here.