The coronavirus crisis and its economic consequences (experts are anticipating an economic downturn) require today a different response than in previous crises, not only because French law has significantly changed since 2008:
- While COVID-19 may be classified as a Force Majeure event, there are important legal exceptions.
- A change in economic conditions is now officially recognised by French contract law:
- Impact on a potential termination
- Impact on a contract renegotiation
- As opposed to many other legal systems, the opening of insolvency proceedings in France does not allow one to escape from a contractual relationship – waiting for insolvency to happen is not an exit strategy.
- The coming weeks will therefore be crucial in terms of evaluating and anticipating the legal tools that can be implemented to address each situation.