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Is Covid-19 epidemic a force majeure according to Chinese laws?

By Sun Jin, Marlow, China attorney at law

· Procedure,Transnational Commerce

Covid-19 is a force majeure. The epidemic is an unforeseeable, inevitable and insurmountable objective situation, and its nature can be determined as a force majeure event, but whether it will be determined by the court as force majeure in the specific contractual relationship and the reason for the legal exemption still need to be judged in light of the fundamental purpose of the specific contract, the performance of the contract, the causal relationship and other factors. If the contract cannot be performed due to force majeure, unless otherwise provided by law, partial or total exemption from liability.

Civil Code of the People's Republic of China

Article 590 Where one of the parties is unable to perform the contract due to force majeure, it shall be partially or completely exempted from liability according to the impact of force majeure, except as otherwise provided by law. If the contract cannot be performed due to force majeure, the other party shall be notified in a timely manner to mitigate the losses that may be caused to the other party, and proof shall be provided within a reasonable period of time.

Where force majeure occurs after a party's delay in performance, it shall not be exempted from liability for breach of contract.

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