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Covid-19

To what extent is the Covid-19 pandemic considered a “force majeure” excuse in contractual relations

The (COVID-19 – corona virus) pandemic may be considered a force majeure issue in Cyprus as it is an event outside the control of both contracting parties. The effect of the force majeure event depends upon the subject matter of the contract and the effect of the force majeure event (if any) on the performance of the contract.

As a result of the pandemic a general extension of time for the performance of contracts and a waiver of the imposition of penalties for the duration of the declared State of Emergency has in cases where the pandemic has affected performance of a contract been made a part of Cyprus law. The said provision is however subject to the obligation of a party that is unable to perform the contract as envisaged or at all, as the case may be, to take all reasonable measures to mitigate the effects of the force majeure. These are general principles of the Common Law that fully apply in Cyprus.