Impact of “Covid – 19” in Contractual Matters on your Company

Earlier this year, in various parts of the world, the disease known as “COVID-19” has spread. Companies, entrepreneurs, entrepreneurs and, in general, those who have business relations in Mexico, show uncertainty about the legal actions that will be taken in the event that our authorities announce social isolation.

As the “COVID-19” disease is considered a pandemic, it will begin with the closure of shopping centers, restaurants, cinemas, parks, workplaces, in general, any place that encourages crowds; likewise, suspensions will begin, delays or non-performance of contractual obligations, as a consequence of the above, a negative impact on your company.

In contractual matters, doubts have been raised about the possibility of considering “COVID-19” as a case of fortuitous event (acts originating from man) or of force majeure (events of nature), these concepts could be interpreted in the event of a declaration of health contingency as well as a pandemic, such as the one declared on 30 March; which would justify the breach of certain contractual obligations, without any liability for the debtor, with regard to the payment of damages or conventional penalties arising from such failure or delay, depending on the specific case.

In response to the above, in Bandala | Díaz | García, following the events by “COVID-19”, we have modified our service delivery mechanisms, through our digital media, in order to review the content of your contracts and, In this way, identify the clauses regulating liability for non-performance; deadlines; guarantees; coverage of insurance policies; applicable law; which allows us to:

· Catalog impact levels for breach of contractual obligations.

· Negotiate with suppliers for deferred payment or request extension.

· Avoid future legal and economic inconveniences.

We appreciate your interest in our content, we invite you to stay positive and take precautions to avoid a negative impact by breaching your contractual obligations.