COVID-19 Legal Lab

Notes on the impact of COVID-19 in private contracts

Consequences of the COVID-19 outbreak have affected almost every aspect of life in society. The existence of a disease that is so contagious that it is making governments urge their citizens to stay home, although not unheard of, is not a common picture. Amid this situation, information runs freely through the media and the internet, at times playing an important role, and at times contributing to a sense of panic and imminent chaos.

In light of the uncertainty of the current scenario, many have been questioning what exactly will be the impacts of this crisis when it comes to contracts. A knee-jerk reaction would be to think of tools such as force majeure¹ or excessive onerousness² to justify possible failures to perform obligations. This, however, could be a rushed and simplistic conclusion. Every contractual relationship is unique and may contain many relevant particularities³. It would be unwise to think of a one-size-fits-all solution for such a complex realm of situations.

It is important to notice that the effects of the outbreak do not necessarily influence every type of contract. The actual impact to each case can only be identified with a full screening of the contractual relationship, including the circumstances surrounding the negotiation and entering of the contracts. Such screening would require, amongst others, the assessment of whether the contract was signed prior or after the declaration of a pandemic, if there is any relevant supervening legislation, if possible changes in timing would cause a loss of purpose, how the parties chose to apportion risk, if necessary supplies and raw materials are available and the nature of the obligations pertaining to the contract.

The analysis also must take into account the actual objectives of the contract and the intent of the parties upon the beginning of the contractual relationship. If the contract requires a periodic or continued performance, the behavior of the parties throughout the fulfilling of the obligations is also very relevant. A meticulous assessment is critical, as the current crisis should not be viewed as a way out of contracts and obligations that the parties no longer wish to fulfill.

On the contrary, the solidity of contracts is one of the reliefs that can aid society through the crisis. But for this to be an option, instead of the immediate reaction, there is only one thing to do: collaborate. The parties, now more than ever, have a duty to act on good faith and attempt to negotiate and preserve their contractual relationships as much as possible⁴⁻⁵. With an active effort on this front there is a better chance of a quick economic recovery.

1 Brazilian Civil Code, Art. 393 –The debtor is not liable for losses resulting from a fortuitous event or forcemajeure, unless he has expressly made himself liable therefor. Sole paragraph.A fortuitous event of force majeure is an inevitable event, the effects ofwhich were not possible to avoid or prevent. (ROSE, Leslie. The Brazilian CivilCode in English. Rio de Janeiro: Renovar. 2008).

2 Brazilian Civil Code, Art. 478 – Incontracts with continuing or deferred performance, if the obligation of one ofthe parties becomes excessively onerous, with extreme advantage for the other,by virtue of extraordinary or unforeseeable events, the debtor may apply fordissolution of the contract. The effects of the judgment that declaresdissolution shall be retroactive to the date of citation. (ROSE, Leslie.The Brazilian Civil Code in English. Rio de Janeiro: Renovar. 2008).

3 See SOUZA, Eduardo Nunes de; SILVA, Rodrigo daGuia. Resolução contratual nos tempos do novo coronavírus Available at https://www.migalhas.com.br/coluna/migalhas-contratuais/322574/resolucao-contratual-nos-tempos-do-novo-coronavirus

4 Brazilian Civil Code, Art. 422 –The contracting parties are bound to observe the principles of probity and goodfaith, both in entering into the contract and in its performance.

5 See SCHREIBER, Anderson. Devagar com o andor: coronavírus e contratos - Importância da boa-fé e do dever de renegociar antesde cogitar de qualquer medida terminativa ou revisional. Available at https://www.migalhas.com.br/coluna/migalhas-contratuais/322357/devagar-com-o-andor-coronavirus-e-contratos-importancia-da-boa-fe-e-do-dever-de-renegociar-antes-de-cogitar-de-qualquer-medida-terminativa-ou-revisional

See PDF version
here
ENQUANTO NO BRASIL NÃO SE PREMIA O INFORMANTE, NOS EUA...
HOW WHISTLEBLOWERS ARE TREATED IN BRAZIL AND IN THE USA
ENQUADRAMENTO DE BASE LEGAL PARA O TRATAMENTO DE DADO PESSOAL – O ÓTIMO EXEMPLO DADO PELA AUTORIDADE DE PROTEÇÃO DE DADOS NO REINO UNIDO (ICO)
MATCHING THE LEGAL BASIS FOR THE PROCESSING OF PERSONAL DATA - THE GREAT EXAMPLE GIVEN BY THE UNITED KINGDOM'S DATA PROTECTION AUTHORITY (ICO)
GUIA PARA DETERMINAR A INTERFERÊNCIA DE PAÍSES ESTRANGEIROS NA PROTEÇÃO DE DADOS PESSOAIS
GUIDE TO ASSESS THE INTERFERENCE OF FOREIGN COUNTRIES IN PERSONAL DATA PROTECTION
O COMBATE À CORRUPÇÃO NA ITÁLIA
FIGHTING CORRUPTION IN ITALY
BRAZILIAN POWER SUPPLY CRISIS AND COMPANY STANCES
A CRISE ENERGÉTICA E AS PRÁTICAS AMBIENTAIS, SOCIAIS E DE GOVERNANÇA
A FALTA DE REGULAMENTAÇÃO DO ENCARREGADO E AS INCERTEZAS QUANTO AO SEU PAPEL
LACK OF REGULATION FOR DATA PROTECTION OFFICERS GIVES RISE TO UNCERTAINTIES ON THEIR ROLE
ESG PARA LEIGOS!
ESG for laymen!
DESCONTOS EM MEDICAMENTOS - UMA FONTE DE PREOCUPAÇÃO PARA O SETOR FARMACÊUTICO
DISCOUNT ON MEDICATION - A SOURCE OF CONCERN FOR THE PHARMACEUTICAL SECTOR
A CAPTURA DE TRANSFERÊNCIAS DE VALOR PARA PROFISSIONAIS DE SAÚDE
DISCLOSURE OF TRANSFER OF VALUE TO HEALTH PROFESSIONALS
Webinar - Entenda as principais leis anticorrupção pelo mundo
Webinar - Understanding anti-corruption laws around the world
A AUSÊNCIA DA PROPORCIONALIDADE NA LEI GERAL DE PROTEÇÃO DE DADOS
THE LACK OF PROPORTIONALITY IN THE GENERAL DATA PROTECTION LAW
THE COMPLIANCE POLICY FOR FINANCIAL INSTITUTIONS ACCORDING TO THE NATIONAL MONETARY COUNCIL
A POLÍTICA DE COMPLIANCE PARA AS INSTITUIÇÕES FINANCEIRAS SEGUNDO O CONSELHO MONETÁRIO NACIONAL
EUROPEAN BODIES APPROVE JOINT PROPOSAL TO PROHIBIT THE USE OF AI FOR AUTOMATED RECOGNITION
ÓRGÃOS EUROPEUS APROVAM PROPOSTA CONJUNTA PARA PROIBIR O USO DE IA PARA RECONHECIMENTO AUTOMATIZADO
O CADASTRO NACIONAL DE EMPRESAS INIDÔNEAS E SUSPENSAS (CEIS) E O CADASTRO NACIONAL DE EMPRESAS PUNIDAS (CNEP)
THE NATIONAL REGISTRY OF INELIGIBLE AND SUSPENDED COMPANIES (CEIS) AND THE NATIONAL REGISTRY OF PUNISHED COMPANIES (CNEP)
ANPD LANÇOU GUIA ORIENTATIVO SOBRE OS AGENTES DE TRATAMENTOS DE DADOS
ANPD RELEASED GUIDELINES ON DATA PROCESSING AGENTS
A VIDA DE FRAUDADORES CIBERNÉTICOS FICOU MAIS DIFÍCIL
THE LIFE OF CRACKERS HAS BECOME MORE DIFFICULT
COOKIES: ENTENDA DE UMA VEZ POR TODAS!
COOKIES, UNDERSTAND IT ONCE AND FOR ALL!
HOW MUCH DOES IT COST, AND HOW MUCH DOES A COMPANY EARN WITH A COMPLIANCE PROGRAM?
QUANTO CUSTA E QUANTO GANHA UMA EMPRESA COM UM PROGRAMA DE COMPLIANCE
COVID-19 IN THE WORKPLACE
A COVID-19 NO AMBIENTE DE TRABALHO
NEW DIRECTIONS FOR PUBLIC CIVIL ACTION IN BRAZIL
NOVOS RUMOS PARA A AÇÃO CIVIL PÚBLICA NO BRASIL
MPF, SENACON, CADE E ANPD RECOMENDAM AO WHATSAPP O ADIAMENTO DA VIGÊNCIA DE SUA NOVA POLÍTICA DE PRIVACIDADE
MPF, SENACON, CADE, AND ANPD RECOMMEND WHATSAPP EXTEND THE TERM OF ITS NEW PRIVACY POLICY
THE RUSSIAN ANTI-CORRUPTION LAW
A LEI ANTICORRUPÇÃO RUSSA
THE WHISTLEBLOWER IN BRAZIL
O WHISTLEBLOWER E O BRASIL
Webinar LGPD – Data Leaks and first decisions
Webinar -LGPD – Vazamentos de Dados e primeiras decisões
ANTI-SPAM LAWS AROUND THE WORLD
PRINCIPAIS LEIS ANTI-SPAM NO MUNDO
Webinar ‘FCPA Review 2020 – Hot Cases’
Webinar ‘FCPA Review 2020 – Hot Cases’
NOVA LEI DE LICITAÇÕES É SANCIONADA NO BRASIL
NEW GOVERNMENT PROCUREMENT RULES ARE ENACTED IN BRAZIL
THE DISPOSAL OF PERSONAL DATA
O DESCARTE DE DADOS PESSOAIS
CNIL INTRODUCED NEW RULES FOR THE USE OF COOKIES IN FRANCE IN 2020
CNIL INTRODUZIU NOVAS REGRAS PARA USO DE COOKIES NA FRANÇA EM 2020
AN ANALYSIS OF THE SANCTIONS APPLIED BY THE WORLD BANK IN 2020
O RETRATO DAS SANÇÕES APLICADAS PELO BANCO MUNDIAL EM 2020
THE FRENCH ANTICORRUPTION AGENCY (AFA) PUBLISHES NEW GUIDELINES FOR PUBLIC AND PRIVATE ORGANIZATIONS
AGÊNCIA ANTICORRUPÇÃO FRANCESA (AFA) PUBLICA NOVO GUIA PARA ORIENTAÇÃO DE ORGANIZAÇÕES PÚBLICAS E PRIVADAS
EXIGÊNCIA DE PROGRAMAS DE COMPLIANCE PARA LICITAÇÕES NO ESTADO DE PERNAMBUCO É ADIADA
COMPLIANCE PROGRAM REQUIREMENTS FOR BIDS IN THE STATE OF PERNAMBUCO ARE POSTPONED
FDA PUBLICA NOVO GUIA PARA ORIENTAR FABRICANTES SOBRE COMO NOMEAR MEDICAMENTOS
USFDA PUBLISHES GUIDELINES FOR MANUFACTURERS NAMING NEW MEDICINES
Judicialização dos medicamentos: EUA x Brasil
Judicialization of medicines: USA x Brazil’
Resultados estatísticos da Lei Europeia de proteção de dados (GDPR) em 2020
Statistical results of General Data Protection (GDPR) enforcement in 2020
Aparentes excessos na proteção de dados preocupam
Is there potential for excessive rigor in data protection?
ANPD e o desafio de regulamentar a LGPD
The ANPD and the challenge of enforcing the LGPD
Como o Canadá combate o spam!
How Canada combats spam!
Can a collection company call indebted consumers once the General Data Protection Law is in force?
Pode uma empresa de cobrança ligar para um consumidor em débito após a vigência da Lei Geral de Proteção de Dados?
CONAR launches a guide for digital influencers
CONAR lança guia para influenciadores digitais
And how about the privacy and protection of personal data in the United States of America?
E como anda a privacidade e proteção de dados pessoais nos Estados Unidos da América...
Governo do Estado de São Paulo proibe farmácias e drogarias de exigirem CPF para conceder descontos
São Paulo State Government prohibits pharmacies and drugstores from requiring a CPF to grant discounts to their customers
And speaking about spam...
E por falar em spam...
O direito de acesso do titular dos dados pessoais e o pesadelo para as empresas
The right of the subject to access their personal data and the nightmare this creates for businesses
Farmacêutica entra em litígio judicial contra o governo norte-americano para possibilitar copagamentos
Drugmaker launches litigation against the US government to enable co-payments
A corrupção e a responsabilidade penal das empresas
Corruption and the criminal liability of companies
Certificação de Segurança da ABNT diverge de Posicionamento de Autoridade Europeia sobre Privacidade e Proteção de Dados
ABNT Security Certification Diverges from the European Authority's Position on Privacy and Data Protection
Avaliação de riscos - A sua está em dia?
Risk assessment - Is yours up to date?
United States government announces largest healthcare and opioid enforcement action in history
Governo dos Estados Unidos anuncia o combate a maior fraude na saúde já registrada
Compliance in the financial market
Compliance no mercado financeiro