Sirel  Partners Law Firm
ScalaCity building

Tartu mnt 43, Estonia

Tel: +372 606 9600

Fax: +372 606 9601

E-mail: info@sirel.com

 

 

  



 

 

 

 

  

Is the breach of obligations excusable in light of COVID-19?

Since March 12, an emergency situation was declared by an Estonian Goverment due to the spread of coronavirus. The whole economic environment has changed dramatically and a great number of enterprises are faced with the ruthless truth of not being able to fulfill their contractual and non-contractual oblgations. A question of what can be done to protect ones company and legal rights is being asked by many right now.

According to the Law of Obligations, such breach of contractual obligations is excusable if it is caused by force majeure. Force majeure clauses are contractual clauses which alter parties' obligations and/or liabilities under a contract when an extraordinary event or circumstance beyond their control prevents one or all of them from fulfilling those obligations.

In case of contractual obligations, force majeure is, as a rule, governed by the contract and therefore all the specific rules on force majeure should be verified within the contract concerned.

As each situation is unique, it is impossible to draw a general and unequivocal conclusion, however given the current state of emergency, it is highly likely that the situation declared by the Government would qualify as force majeure and provide a legal relief on breaching obligations.

In the event of force majeure, the breach of debtors obligations is only excusable as long as the circumstances giving rise to force majeure persist and the extent of which force majeure prevents the fullfilment of ones obligations.

The party who is in breach of its contractual obligations due to force majeur is obliged to inform the other party of those circumstances immediately and give reasons of failure to fullfill its obligations.


© 2010 Sirel & Partners logo and name are regeistered trademarks

The Employer has the right to reduce wages down to an existing official minimum wage.

20.03.2020

The Estonian Government has declared an emergency situation concerning with the spread of coronavirus since March 12, 2020.
The economic environment has changed drastically, and many employers find themselves in a position where they are faced with dramatic drop in demand and are looking for ways to reduce labor costs.
Looking at long-term solutions redundancies are the answer, short-term however it is possible to temporarily reduce the wages of existing personnel down to official minimum wage.
Read more >>>

Is the breach of obligations excusable in light of COVID-19?

20.03.2020

Since March 12, an emergency situation was declared by an Estonian Goverment due to the spread of coronavirus. The whole economic environment has changed dramatically and a great number of enterprises are faced with the ruthless truth of not being able to fulfill their contractual and non-contractual oblgations. A question of what can be done to protect ones company and legal rights is being asked by many right now.
Read more >>>

Sirel & Partners Golf Open 2019 will be held at Pärnu Bay Golf Links during 5-6 July 2019

11.03.2019

This year the competition will celebrate it's 10th anniversary. The first 2 years were held at Estonian Golf & Country Club and the last 7 years at Otepää Golf Center. It's time to move on and to discover Pärnu as our summer capital.
Read more >>>

Mr Turgay Kuleli from our team organized a business seminar with Enterprise Estonia and Turkish Foreign Economic Relations Board (DEIK) in Istanbul

04.03.2019

Mr Turgay Kuleli from our team has contributed a lot of effort to organize a business seminar with Enterprise Estonia and Turkish Foreign Economic Relations Board (DEIK) in Istanbul on 26.02.2019 to address questions of Turkish automotive industry suppliers about Estonia as an investment destination.

Read more >>>

The Estonian Golf Association and Sirel & Partners have signed a sponsorship agreement

25.02.2019

The Estonian Golf Association and Law Firm Sirel & Partners signed a sponsorship agreement
Read more >>>