contract | In Principle

The Brexit transition period is coming to an end. Whether or not it is still possible for the UK and the EU to reach a new trade agreement, many businesses operating on both sides can expect a number of uncertainties and challenges. Fortunately, one of the issues that will remain stable is the choice of law in contracts. Here Brexit will result in only technical changes.

Contracts for publication of video games are concluded between game developers and companies specialising in publishing games (sometimes referred to “dev-publisher agreements”).

Many contracts provide for a contractual penalty for reputation of the contract due to the other party’s fault and a contractual penalty for delay in performing the contract. But in such cases can both of these penalties be pursued simultaneously?

Entry into force of the Anti-Crisis Shield, i.e. the 31 March 2020 amendments to the Anti-Crisis Act, has had a strong impact on the real estate market, especially the rental market for space at shopping centres. In addition to the widely discussed Art. 15ze, which has extinguished mutual obligations of the parties to lease agreements, the parliament has also introduced another important provision which may significantly affect the rights and obligations of not only the parties to lease agreements, but also other participants in commerce.

For obvious reasons, remote signing of contracts has assumed great significance recently. To conclude a contract, is it sufficient to exchange a few emails or to transmit electronically signed documents? It depends.

Many businesses and their lawyers are now analysing the impact of the coronavirus on their contractual obligations. In the case of some contracts the situation is further complicated by the fact that the contract is governed by foreign law.

The pandemic may delay the performance of construction works and increase their costs. It may even make it completely impossible for a contractor to fulfil its obligations. But how this affects the contractors’ legal situation depends on the factual circumstances of the given case and the wording of the specific construction contract.

Even such unusual circumstances as a pandemic do not overthrow the general principle that contracts should be performed (pacta sunt servanda). But this does not mean that the current situation has no impact on the substance or performance of contractual obligations.

In the tough times of battling the coronavirus, many tenants are seeking ways to reduce their rent, release themselves from the obligation to pay rent, or avoid other obligations under their existing leases. What opportunities does the law offer them?

An issue concerning businesses at present is the problem of settlements between them resulting from non-culpable inability to perform contracts. This is an area that may require the Parliament’s intervention if current regulations prove insufficient.

Numerous sectors of the economy have been paralysed. The problem is not just closings or restricted access to a range of services, but also absence of staff due to illness, quarantine or childcare. Consequently, businesses cannot operate normally or perform their obligations on time. A lack of supplies by one company often carries over to an inability of its customers to fill their own orders. This bogs down the whole economy. We await systemic solutions allowing Polish businesses to survive. But before they arrive, it’s a good time to examine the regulations currently in force.

The simplest answer is “it depends”—primarily on the specific clauses included in the contract and the governing law. This issue is worth considering under Polish law, because economic globalisation means that factory closings in China could also disrupt supply chains in Poland.