In the last few years in Romania, there have been various external events such as the Covid-19 pandemic, the war in Ukraine or the Suez Canal crisis, which have determined various economic imbalances which have led to the non-fulfillment of the contractual obligations due to the hardship, force majeure or unforeseeable circumstances, in Romania. In most situations, these imbalances were manifested by the price increase in Romania, the Romanian service providers being forced to resort to the adaptation of the agreement and even in the last instance to the termination of the effects of the agreement in Romania, as a result of the failure of the negotiations. Pavel Margarit and Associates Romanian Law Firm recommends to contact a lawyer specialized in commercial law and litigation in Romania considering the fact that not every external, invincible event leads to a contractual imbalance in Romania, as it cannot be said that any provider of services in Romania has experienced fluctuations in the management of its own businesses in Romania.
Applicability of hardship, force majeure, unforeseeable circumstances in agreements in Romania
In order to analyze the legal consequences of the recent events in Romania, the Covid-19 pandemic, Ukraine war, the Suez Canal crisis, price increase in Romania, it must take into account the hardship, force majeure, unforeseeable circumstances in agreements in Romania, which although apparently have elements of similarity, in reality they have a different applicability. Thus, while the hardship in Romania intuited an excessive imbalance of the benefits for the parties, the fulfillment of the contractual obligations being still possible, in the case of unforeseeable circumstances and force majeure, the impossibility of execution intervenes. In practice, considering the measures imposed by the Romanian authorities during this period, the application of the previously labeled institutions can be imprecise/unclear, which is why Pavel Margarit and Associates Romanian Law Firm recommends to contact a lawyer specialized in commercial law and litigation in Romania, who can accurately analyze the situation, considering that it may be necessary to adjust the contractual terms in Romania or even to terminate the effects of the agreement as a result of the non-fulfillment of the contractual obligations in unexpected situations in Romania
Relevant aspects
The correct application of the institutions definitely depends on the contractual clauses that regulate them, especially regarding pre-established conditions and limits as well as the good faith of the parties. A series of applicable factors must be analyzed extensively, taking into account the legal provisions issued by the Romanian authorities during the Covid-19 pandemic, the Ukraine war, the Suez Canal crisis, the person to whom the respective normative act is addressed, the object of the contract, the nature services of the parties, the object of activity of the company that wishes to be protected by such provisions, because it cannot be said in general that these crisis situations have affected any service provider in Romania, the presumptions being proven concretely on a case-by-case basis.
As an exception and analyzing all the other elements of the situation, the Romanian Litigation Court may consider it necessary to suspend the effects of the agreement in Romania, which is why Pavel Margarit and Associates Romanian Law Firm recommends to contact a lawyer specialized in commercial law and litigation in Romania for assistance during the process and procedural stages, considering the fact that, for the adaptation of the contractual clauses a clearly defined evidence will be necessary.
Hardship, force majeure, and unforeseeable circumstances are legal concepts that can affect contractual agreements in Romania. While hardship refers to excessive imbalances of benefits between the parties, with contractual obligations still possible to fulfill, force majeure and unforeseeable circumstances involve situations where execution becomes impossible. The applicability of these concepts may vary depending on the specific circumstances. It is advisable to consult a lawyer specialized in commercial law and litigation in Romania to accurately analyze the situation, determine the appropriate legal principles to apply, and consider adjustments to contractual terms or termination of the agreement if necessary.
The correct application of hardship, force majeure, and unforeseeable circumstances depends on several factors, including the contractual clauses governing these concepts, pre-established conditions and limits, and the good faith of the parties. The legal provisions issued by Romanian authorities during events such as the Covid-19 pandemic, Ukraine war, and Suez Canal crisis should be considered. Other factors include the intended recipients of the normative acts, the nature of the services or activities involved, and the specific impact on the company seeking protection under these provisions. Each situation must be assessed on a case-by-case basis, and the assistance of a lawyer specialized in commercial law and litigation in Romania is recommended to navigate the complexities of the situation and provide accurate legal guidance.
In exceptional circumstances, the Romanian Litigation Court may decide to suspend the effects of an agreement. This could occur if the situation warrants an adjustment to contractual clauses or termination due to non-fulfillment of contractual obligations resulting from unexpected events. However, clear evidence and a thorough analysis of the specific elements of the situation are necessary to support such a decision. To ensure proper assistance during the process and procedural stages, it is advisable to seek the guidance of a lawyer specialized in commercial law and litigation in Romania. They can help gather the necessary evidence and provide the appropriate legal representation.