Force Majeure Circumstances as the Ground for Release from Economic Liability: The Analysis of Modern European and Ukrainian Approaches

Abstract

The scientific research is devoted to the problematic issues of force majeure circumstances as the ground for release from the liability in the economic sphere. The aim of the article is to represent the main peculiarities of force majeure circumstances in the modern socio- economic conditions. The definition, features and specialties of application of force majeure clause are thoroughly studied. As well as that the division between force majeure and superior force circumstances is provided. The special attention is paid to the specifics of release from economic liability due to COVID-19. In the survey the authors analyse the possibilities of application of force majeure clause in the conditions of the world pandemic situation. The authors suggest an efficient algorithm of actions while conducting of economic activity in the conditions of force majeure circumstances. In the article it is highlighted that the terms of superior force and force majeure circumstances are not strictly defined in the legislation. However, this fact does not prevent to consider these events according to such their features as extraordinary and exceptional nature defined in the legal acts. While conducting the research following methods were used, namely the dialectical method, the method of systematic-structural analysis, comparative method, as well as other methods and scientific approaches. The results of the survey are of crucial importance for practice and theory as it provides deep understanding of the nature of force majeure circumstances. The research conclusions stipulate the main rules of application of force majeure clause while closing and execution of commercial contracts. The article provides the readers with the essence of force majeure circumstances, allowing scholars and practitioners to understand the particularities of force majeure circumstances in various situations, namely in the condition of COVID-19. As a result of this the survey becomes even more important as it may act as a legal guideline for participants of commercial relations facing the necessity of adapting and adjusting their economic activity to modern conditions.

The Application of Force Majeure in the Resolution of Unpaid Debts at Banking Institutions Resulting From Natural Disasters

“…The second factor is debtor ineligibility caused by issues such as rejection, personal problems (such as accidents, illness, death, or divorce), a lack of knowledge and experience, corporate mismanagement or fraudulent activities. The third factor is external and includes economic progress, natural calamities, and government regulations (Zghama et al, 2021). The issue of banks having a high number of defaulted loans resulting from natural calamities is often the reason for the banks to suffer financial losses.…”