General legal framework

General qualification

The purpose of the emergency bill to deal with the Covid-19 epidemic is in particular to:

To authorize the government to take in various fields measures falling within the domain of the law

Within three months

If necessary with effect from, retroactively from March 12, 2020

Special authorization

One of the purposes of authorization is to deal with the economic, financial and social consequences of the spread of the covid-19 virus and the measures taken to limit this spread, and in particular to prevent and limit the cessation of activity of natural persons and companies carrying out an economic activity and its impact on employment.

With regard to this objective, the government is empowered to take a number of measures

The measures of the bill concerning business relations

Modification of obligations: measures

Amending, with due respect for reciprocal rights, the obligations of legal persons governed by private law carrying out an economic activity with regard to their customers and suppliers, as well as of cooperatives with regard to their cooperative members, in particular in terms of deadlines payment and penalties and the nature of the counterparties, in particular with regard to the contracts for the sale of travel and stays mentioned in II and III of article L. 211-14 of the tourism code;

Reports, spreads, waivers: measures

Allowing to defer or spread the payment of rents, water, gas and electricity bills relating to professional premises, to waive financial penalties and suspensions, interruptions or reductions in supplies likely to be applied in the event of non-payment of these invoices, for the benefit of very small businesses whose activity is affected by the spread of the epidemic.

The measures of the bill concerning business relations

Changes in obligations

Legal persons governed by private law having an economic activity in certain relations with regard to their customers and suppliers

Cooperatives with regard to their cooperative members

 

Specific measures for very small businesses affected

Deferrals or installments of rents, water, gas and electricity bills relating to business premises

Waiver of financial penalties and suspensions, interruptions or reductions in supplies that may be applied in the event of non-payment of these invoices

Measures reserved for certain categories of actors

ggggggggg Measures a priori limited ggggggggggggggggggggggggggg

To certain forms of relationships (customers, suppliers, cooperatives, etc.)

On certain subjects (payment deadlines, penalties, etc.) for all legal persons governed by private law and even for very small businesses

Measures which are likely to leave a great deal of room for the application of certain mechanisms, namely

Common law of the sanction of non-compliance with its obligations by a party (exception of non-performance, price reduction, forced execution, resolution, liability, etc.), at least in relations not concerned

Mechanisms such as force majeure or unforeseeability and their consequences

And which will undoubtedly also leave a lot of room for negotiation

MORGAN JAMET

MORGAN JAMET

associate lawyer

Lawyer at the Paris staff. Member of the Paris Bar since 1999. Holder of a DEA in contract law from the Jean Monnet Law School (Paris XI)

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