Article 4 of the Ordinance (as amended): new rules regarding the temporary suspension of clauses sanctioning breach of contract
All late payment penalties, penalty clauses, termination clauses and clauses providing for forfeiture are covered by the Ordinance, provided that:
- the purpose of these clauses is to "sanction the breach of an obligation within a specified period of time";
In practice, this refers to clauses sanctioning the obligor in the event of a breach of an obligation to deliver a good, provide a service or pay off a loan within a specified period.
- the period available to the obligor to perform its obligations should expire during a "legally protected period" starting 12 March 2020 and ending at "the expiry of a one-month period from the termination date of the health emergency";
To date, the health emergency is for a two-month period and will therefore end on 24 May 2020. However, the date of 24 May 2020 may soon be adjusted to coincide with a resumption of economic activity and a return to the rules of ordinary law regarding time limits.