With regards to deposits or prepayments, it is possible that the immediate demand for repayment will not be sustainable. The judge, even though one may get before it, is likely to claim that a deposit, at least for the time being, can not be recovered. Of course, if the actual performance under the contract is excused (and not simply suspended), the deposit will be automatically recoverable, whether or not the contract calls for such reimbursement. If the contract does not cover the refund of a deposit or part-payment, any money paid can be included in the refund.
The most critical aspect of frustration is that it offers an excuse for non-performance. If the contract has a force majeure clause, the terms of the provision shall apply. Many of these clauses are standard and include a laundry list of events that provide an excuse for non-performance. Such clauses often have a general excuse for "acts of God." Unless the force majeure provision does not include or mention an event that is entirely unforeseen and unpredictable, there is a possibility that the court may conclude that such an event is not available as an excuse. In other words, by restricting the scope of the force majeure clause, the parties could have omitted the protections of common law.
In the ordinary force majeure clause, the seller or supplier shall inform the purchaser that an event of force majeure has occurred and shall claim that he has discharged his obligation to perform. This notice excuses the purchaser from his obligation to purchase, but not usually from his obligation to pay for what he has already received. A standard clause might continue to state that, after some time, maybe some months, either party can, by giving, say, not less than one month's notice, bring the relationship to an end.
If the contract does not have a force majeure clause, COVID-19 would be a stressful occurrence that will exempt the seller from his obligation to produce, just though the buyer is equally excused from his obligation to purchase. The law has usually maintained that the duty to pay money is not excused by anger. The duration of the current crisis is an important and unknown factor. All of this being said, I think it is very important for the parties to act in good faith. In the very least, this duty means that it would always be best if both parties are able to behave fairly, in good faith and work hard to find a fair solution. At the very least, good faith allows the parties to speak and try and find a solution. The hardest thing to do is to act compulsively and arbitrarily.
With regards to deposits or prepayments, it is possible that the immediate demand for repayment will not be sustainable. The judge, even though one may get before it, is likely to claim that a deposit, at least for the time being, can not be recovered. Of course, if the actual performance under the contract is excused (and not simply suspended), the deposit will be automatically recoverable, whether or not the contract calls for such reimbursement. If the contract does not cover the refund of a deposit or part-payment, any money paid can be included in the refund.
The most critical aspect of frustration is that it offers an excuse for non-performance. If the contract has a force majeure clause, the terms of the provision shall apply. Many of these clauses are standard and include a laundry list of events that provide an excuse for non-performance. Such clauses often have a general excuse for "acts of God." Unless the force majeure provision does not include or mention an event that is entirely unforeseen and unpredictable, there is a possibility that the court may conclude that such an event is not available as an excuse. In other words, by restricting the scope of the force majeure clause, the parties could have omitted the protections of common law.
In the ordinary force majeure clause, the seller or supplier shall inform the purchaser that an event of force majeure has occurred and shall claim that he has discharged his obligation to perform. This notice excuses the purchaser from his obligation to purchase, but not usually from his obligation to pay for what he has already received. A standard clause might continue to state that, after some time, maybe some months, either party can, by giving, say, not less than one month's notice, bring the relationship to an end.
If the contract does not have a force majeure clause, COVID-19 would be a stressful occurrence that will exempt the seller from his obligation to produce, just though the buyer is equally excused from his obligation to purchase. The law has usually maintained that the duty to pay money is not excused by anger. The duration of the current crisis is an important and unknown factor. All of this being said, I think it is very important for the parties to act in good faith. In the very least, this duty means that it would always be best if both parties are able to behave fairly, in good faith and work hard to find a fair solution. At the very least, good faith allows the parties to speak and try and find a solution. The hardest thing to do is to act compulsively and arbitrarily.
How frustration is applicable in the era of covid-19 FRUSTRATION IN LAW
The era of COVID-19 witnessed what seems to be the beginning of a reversal trend to decades-long globalization and free-trade movement. This is evident in the GCC countries which are under pressure to diversify their economies, away from oil, and reduce dependency of foreign labor. Assuming that you, as an astute business and economic student, are invited to present arguments for restricting trade a
The era of COVID-19 witnessed what seems to be the beginning of a reversal trend to decades-long globalization and free-trade movement. This is evident in the GCC countries which are under pressure to diversify their economies, away from oil, and reduce dependency of foreign labor. Assuming that you, as an astute business and economic student, are invited to present arguments for restricting trade and using Chapter 9 as your arsenal, which of the argument(s) would be most appealing. Be sure...
The unexpected and unprecedented outcome of COVID-19 has seen many businesses come face to face with challenges, the likes of which they have never faced before. The virus has had serious consequences on the fiscal position of the country. Despite this, the Government of Ghana in March 2020, announced various tax incentives for specified individuals and entities in response to the impact of COVID-19 on the economy. As a Tax and Business Strategy student, identify the various tax measures instituted...
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