Chinanews Client Beijing March 11 (Reporter Li Jinlei) Affected by the epidemic, the contract could not be performed normally, and I was facing loss of money and goodwill. What should I do? Do n’t worry, at present, the state has made it clear that failure to perform the contract due to epidemic prevention and control is force majeure. At present, many enterprises have applied for factual proof of force majeure to reduce the losses caused by the epidemic.
Staff at Shanghai Pudong Airport are on duty in Terminal T2. Photo by China Press Agency reporter Yin Liqin
Failure to perform contract due to epidemic prevention and control is force majeure
Many companies have recently reported that due to the impact of this epidemic, many of the obligations stipulated in the contracts cannot be performed normally, and therefore they will face huge compensation losses and loss of goodwill. What should I do?
In response, Zang Tiewei, spokesperson of the Standing Committee of the National People's Congress and director of the Research Office, said on February 10 that a new public health event of pneumonia caused by a new type of coronavirus has occurred in China. In order to protect public health, the government has also adopted corresponding prevention and control measures. For the parties who are unable to perform the contract, it is an unforeseeable, unavoidable and insurmountable force majeure.
According to the relevant provisions of the Contract Law, if the contract cannot be performed due to force majeure, according to the influence of force majeure, the liability shall be partially or wholly exempted, except as otherwise provided by law.
If one of the parties is unable to perform the contract due to force majeure, it shall promptly notify the other party to mitigate the losses that may be caused to the other party, and shall provide proof within a reasonable period.
Pictured: The first batch of force majeure certificates issued by Taizhou, Zhejiang Photo courtesy of Taizhou
May apply for proof of facts of force majeure
For the parties to the contract, they can apply for factual proof of force majeure to minimize the losses caused by the epidemic.
On February 2nd, the China Council for the Promotion of International Trade issued a nationwide first proof of force majeure of pneumonia of a new type of coronavirus infection to a manufacturing company in Huzhou, Zhejiang.
As of March 3, a total of 101 commercial certification authorized institutions across the country's CCPIT system have issued a total of 4,811 factual proofs of force majeure, involving a contract value of approximately 373.7 billion yuan.
It is reported that the factual proof of force majeure is a factual proof act in the field of commercial proof, which refers to the application by the CCPIT and its authorized branches to prove facts related to force majeure.
The certificate has been recognized by governments, customs, chambers of commerce and enterprises in more than 200 countries and regions around the world, and has a strong enforcement force outside the territory. After issuing the certificate, the parties may be partially or completely exempted from the responsibility for non-performance, incomplete performance and delay in performing the contract.
The picture shows the window of Ningbo Council for the Promotion of International Trade. Photo courtesy of Ningbo CCPIT
Is it possible to waive liability by applying for force-of-force facts?
Not necessarily.
According to the explanation of the CCPIT Commercial Certification Center, the CCPIT issues factual proof of specific objective facts related to force majeure. The certification itself will not directly identify the company as encountering force majeure situations, but will prove that delayed resumption of work, traffic control, and labor personnel have occurred. Objective facts such as limited dispatch are one of the evidences that an enterprise notifies the counterparty of a contract that force majeure has caused contract performance to be blocked and wants the contract to be exempted.
According to the compilation of force majeure factual evidence cases issued by the China Council for the Promotion of International Trade, a case showed that according to the contract requirements with Company B, the latest shipping date of Company A was March 15 to complete production and shipment. Affected by the epidemic, Company A had been in a state of shutdown due to the delay in resumption of work by relevant government departments, so it could not complete production on time.
The final testimony issued by the China Council for the Promotion of International Trade is that I hereby certify that according to the "Hubei Provincial New Coronavirus Infectious Pneumonia Epidemic Prevention and Control Command" issued by Hubei Provincial New Coronavirus Infection Pneumonia Prevention and Control Headquarters, In addition to important national economy and people's livelihood-related enterprises, other types of enterprises in Hubei Province will resume work no later than 20:00 on March 10.
The China Council for the Promotion of International Trade stated that whether the performance of a specific contract constituted an exemption from force majeure by the objective circumstances evidenced by the force majeure factual certificate shall also be determined in light of the specific circumstances of the case. If a dispute arises between the two parties, it may need to be resolved through dispute resolution procedures such as mediation, litigation, arbitration.
The China Council for the Promotion of International Trade suggests promptly notifying counterparties of the contract, explaining the reasons, and providing proof within a reasonable period. When necessary, consult a professional legal advisory body to resolve legal disputes.
In addition, the force majeure factual certificate is used not only by foreign-related enterprises, but also by domestic and foreign companies. CCPIT can provide certification services for all registered enterprises in China. (Finish)