COVID-19 and “force majeure”
Tax news, March 2020
The emerging global situation and crisis caused by the COVID-19 virus has resulted in many perplexities and difficulties in the business world. Consequently, the foregoing is reflected in various legal implications. Accordingly, companies must take various measures quickly and resolutely to minimize or avoid potential consequences.
Two things are significant at this point:
- Contractual provisions on force majeure;
- Legal provisions, in particular in the absence of any regulation of force majeure by contract.
In particular, the regulations of Bosnia and Herzegovina that treat force majeure.
However, in order for the legal provisions to be applied, a number of elements must be taken into account, including the timely notification of contractual parties, and the possibility of proving force majeure.
The possibility of proving force majeure will depend on each case, on the applicable legislation related to the business relationship, and on the specific measures taken by each country in the case of international treaties.