Coalition to Restore Legitimacy in Yemen: Interception, Destruction of Ballistic Missile Launched by Terrorist, Iran-Backed Houthi Militia Toward the Kingdom    US Reports 73,610 New Coronavirus Cases    Mercedes' De Vries wins Forumla E's first night race in Diriyah    HRH Crown Prince Receives Phone Call from Emir of State of Kuwait    KSrelief Distributes 3,000 Cartons of Dates in Marib Governorate, Yemen    Wall Street Closing    Dubai extends precautionary measures against COVID-19 to beginning of Ramadan    Coronavirus cases continue to top 1,000 as Kuwait faces resurgence    Royal Court announces death of Prince Fahd bin Mohammad    UN Security Council condemns Houthi terror attacks on Saudi Arabia    CITC governor inaugurates international workshop on IoT technologies    KSU Medical City Participates with Medical Center to Ensure Safety of Formula E Participants    Dubai's landmarks light up in colors of Kuwait flag in celebration of its 60th National Day    HRH Crown Prince Receives Phone Call From Speaker of Iraq's Council of Representatives    SAMI Concludes Its Participation in IDEX 2021, with Key Strategic Partnerships    US carries out air strikes in Syria targeting Iranian backed militias    Hundreds of schoolgirls abducted in Nigeria, government official says    Saudi Press: SDC Aims to Invest in Infrastructure and Development of Tourism and Entertainment Sectors    Weather Forecast for Friday    KAUST solar desalination technology MEDAD wins MEED Sustainability Medal 2020    King Salman discusses bilateral ties, Iranian threats in call with US president    Saudi foreign minister discusses bilateral ties in phone call with US counterpart    CEO of Formula E highlights strong partnership with Saudi Arabia    Inaugural Red Sea International Film Festival to take place in November    CEO of Formula E Highlights Strong Partnership with Saudi Arabia    Saudi Arabia seeks to explore agricultural investment opportunities in Chile    Saudi Stock Exchange Main Index Ends Trading Higher, at 9,194.92 Points    Researchers find worrying new coronavirus variant in New York City    National Debt Management Center Issues Sovereign Bonds in Euro with Negative Return    CEO of Quality of Life Program: by hosting Formula E, Saudi Arabia confirms that it is a global center for major sports    24 Participants Representing 12 World-Class Teams to Take Part in Formula E, in Diriyah    Investigators release preliminary findings on the United Airlines flight engine failure    Saudi Arabia to Host Formula E    Focusing a lens on courage, despair and hope    World's longest painting created in Dubai to raise 110mn dirhams for coronavirus-hit kids    Meghan and Prince Harry expecting second child    Film Commission Launches 28 Cinematic Projects for Winners of Daw' Film Competition    SASCA in Dammam Sets a Deadline for Receiving Participations in International Video Art Forum    Saudi Film Commission Opens Registration Doors for Digital Filmmakers' Program    Saudi Arabia Names " Scales" Film to Represent it in Oscars    Council of Senior Scholars: Muslim Brothers' Group Don't Represent Method of Islam, rather only Follows its Partisan Objectives, Violating our Graceful Religion    Court facilitates young woman's marriage after stripping father's guardianship    Bahrain's top Islamic body condemns attempts to insult Muslim symbols    Saudi man accused of harassing foreign wife asked to be produced before court Court allows divorce, custody of children by mother    S. P. Bala, legendary Indian singer, dead at 74    Eid Al-Adha Prayer Performed at the Grand Holy Mosque    Pilgrims Perform Dhuhr and Asr Prayers in Arafat Holy Site    Senior Scholars Council Issues Decision No. 246 Regarding Attendance of Friday Prayer and Prayers at Mosques in a Case of Spread of Epidemic or Fear of its Spread    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

Supreme Court: Coronavirus is an emergency situation regarding compliance with contractual obligations
Published in The Saudi Gazette on 17 - 01 - 2021

RIYADH — The General Assembly of Saudi Arabia's Supreme Court has accorded its approval to consider coronavirus pandemic as an emergency situation if it is not possible to fulfill a commitment or implement contractual obligation without incurring unusual loss, and force majeure if implementation becomes impossible.
Okaz/Saudi Gazette has learned from well-informed sources that the court has directed to write off delayed rents due to the pandemic and review contracting conditions.
The new regulations, issued by the Supreme Court, stipulated five conditions for applying the principle to affected contracts and obligations.
This will be applied if the contract was concluded before the start of the precautionary measures to stem the spread of coronavirus and continued implementing it after its occurrence.
Another condition is that there had been a direct impact of the pandemic on the contract and that was unavoidable. Similarly, the impact of pandemic on the contract is not dependent on anything else or not sharing with another reason.
The conditions also include that the affected person has not waived his right, and that the effects and damages of the pandemic cannot be dealt with a special law or a decision of the competent authority.
The Supreme Court affirmed that the court, upon the request of the plaintiff who suffered damage, and after balancing the two parties and looking into the circumstances surrounding the circumstances, shall undertake amendments in the contractual obligation that was impacted by the pandemic so as to deliver justice.
The court confirmed that the provisions for renting real estate and movable property affected by the pandemic will be applied in two circumstances. The first is the inability of the tenant to fully or partially use the leased property, and in such a circumstance the court will reduce the rent to the extent of the actual decrease in the usual intended benefit.
In the second circumstance, the landlord does not have the right to terminate the contract if the tenant delays in paying the rent for the period during which it was not possible to use in whole or in part due to the pandemic.
The Supreme Court's instructions also affirmed that four provisions are applied in contracting, supply and related agreements that were affected by the pandemic.
Firstly, if the effect of the pandemic results in an increase in the value of materials, labor supply or operation, then the court increases the value of the contract. In the event that the material price increase is temporary and it is about to disappear, then the court suspends the implementation of the commitment for a temporary period.
Secondly, if the impact of the pandemic results in the lack of goods from the market, then the court will decrease the quantity to the extent it deems sufficient to remove the unusual harm.
Thirdly, if the impact of the pandemic is on the temporary lack of materials from the market; the court suspends the commitment for a temporary period if the obligee is not seriously affected by this suspension.
If he is damaged then he has the right to request for annulment, but if the damage is absolute and this leads to the impossibility of implementing some or all of the contractual obligations, then the court shall terminate it at the request of one of the contracting parties.
Fourthly, if the subject of the contract is an obligation to perform a work and the pandemic causes it to be impossible to be implemented on time, then the court shall suspend the implementation of the commitment for a temporary period, and if the obligee suffers a serious damage, he may request the annulment.
The Supreme Court clarified that, subject to the previous provisions, a court —while examining lawsuits arising from contracts and obligations affected by the pandemic — is obligated not to apply the penalty clause or fines in whole or in part — depending on the case — or withdraw the project and implement the account contained in contracts and obligations, if the pandemic is the reason for delaying the implementation of the obligation.
If the contract includes a clause of exemption from liability for one of the parties to the contract when the emergency or force majeure occurs, then this condition has no effect, and the party who breached the obligation has the liability of proving that the pandemic caused this, the Supreme Court clarified.

Clic here to read the story from its source.