21 January 2016

Subject to force majeure popular in legal circles is almost always, but in business it becomes relevant in times of crisis, when there are problems with the performance of the obligations assumed under contracts — whether the commission payment, delivery of goods, works or services.

At the time of shortage of funds, many companies are looking for in terms of contracts concluded by them clues to justify the failure to perform its obligations, or at least get an exemption from liability. Now they refer to the increase in the exchange rate as an objective reason for late payment or non-delivery of the goods.

But the global financial crises occur with a certain regularity, and Russian arbitration does not recognize sudden changes in exchange rates and the subsequent fall of the ruble of force majeure, the occurrence of which it is the basis for changing the terms of the agreement (for example, correction of prices).

The basis of this approach is an objective criterion: do not change the course of an extraordinary nature and well within the normal business risks. As in 2001, he spoke the Supreme Arbitration Court of the Russian Federation, that «the financial crisis is an objective fact, in times of crisis are all business entities», as the courts and continue to use this thesis and now.

However, what is happening is now extending the reach of freedom of contract is reflected in the judicial practice, which now allows us to treat the price change of course as the disproportionately onerous conditions of payment to which the party is not expected at the conclusion of the contract, or as a substantial change of circumstances. It is worth noting that such an approach can be safely applied to all contracts not: if the tenants an opportunity to cancel the contract without consequences for themselves, already in contract or supply the other party may claim damages.

In normal commercial contracts conditions are often simplified and are not specified. The grounds for exemption from liability is either absent or formal reference is made to Art. 401 of the Civil Code. But when the crisis broke out again, and are formally drawn up contracts began to bring court actions in the framework of the recognition of the currency situation force majeure, it turned out that this is not enough. It is necessary to register separately in the contract that the fall of the ruble, a sharp change in the refinancing rate, a jump in inflation — are grounds for renegotiation. You should also detail the conduct of the parties to register upon the occurrence of these grounds: the mandatory negotiation with the decision to change the terms or terminate the contract.

This is certainly not a panacea for the crisis, and companies that case at all bad, withdraw from the market, regardless of what is written in their contracts. But clearly specified conditions allow, if not to avoid litigation, then just make itself clearer proceedings for the parties and for the court.