28 April 2020

Contractual obligations during COVID-19

The novel coronavirus (2019-nCoV) is raging throughout the world and has been declared a pandemic by the World Health Organization.  In Italy, the Government provided for strict measures aimed at containing the ongoing health emergency.

The Italian Government has ordered a halt to almost any business as well as most of the national industrial production.  This situation has inevitably an impact on the smooth running of economic activities by preventing the timely and correct execution of contractual obligations.  It is therefore essential to examine the remedies made available by the Italian legal system in order to protect debtors and creditors’ interests.  Furthermore, it is crucial to understand under what circumstances the pandemic may suspend the existing contractual relations and/or avoid the liability of a party that caused a breach of contract or a delayed performance.

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