The Legal Characterization of the COVID-19 Pandemic and Its Impact on the Performance of Contractual Obligations

Abstract

impact on the performance of contractual obligations. The study analyzes the pandemic within the framework of force majeure and unforeseen circumstances under civil law, given that COVID-19 caused unprecedented disruptions—such as border closures, suspension of transportation, and economic shutdowns—which rendered the performance of many contractual obligations impossible or excessively burdensome. Consequently, the pandemic raised significant legal questions regarding contract stability and the extent to which the principle of pacta sunt servanda can withstand extraordinary global crises.

The research first defines the concept of a “pandemic” and distinguishes between natural and human-caused events. It then examines whether COVID-19 meets the conditions of force majeure—namely unpredictability and impossibility of prevention—or whether it should instead be legally classified as an unforeseen circumstance that renders performance onerous but not impossible. The findings indicate that COVID-19 may constitute force majeure when its conditions are fully satisfied, while in other cases it may amount to an unforeseen circumstance, subject to the discretion of the court and depending on the nature and duration of the contract.

The study concludes that applying the doctrine of force majeure results in the termination of the contractual obligation due to impossibility, whereas applying the doctrine of unforeseen circumstances leads only to judicial adjustment of the burdensome obligation to a reasonable level. The research recommends incorporating explicit legal provisions addressing the effects of modern pandemics—especially COVID-19—given their recurrence and increased foreseeability in contemporary society.