What are the implications of Corona for your contracts?

Due to the official ban, various industries (retail, gastronomy, travel agencies, etc.) were no longer allowed to provide their services. The fulfillment of the contracts became objectively impossible during the lock-down through no fault of the company. Therefore, the affected company does not have to provide the service and is not liable for damages. The other party to the contract has a right to reimbursement of services already rendered (e.g. down payment).

If the performance can still be rendered after the official prohibitions have ceased to apply (delayed delivery), the (contractual) default rules apply, whereby there is no liability for damages in the case of a delay due to Corona that is not the fault of the other party......

If a company cannot fulfill its contracts as agreed due to Corona (e.g. delivery delays suppliers, loss of employees, etc.), the contracts do not lapse. However, they can be adjusted to the changed circumstances (e.g. extended delivery deadlines, reduction of rent) if the circumstances have not changed foreseeably and significantly after the conclusion of the contract. Ideally, this adjustment is made by mutual agreement and only in exceptional cases by the court. However, there is no obligation to pay damages.

As a rule, permanent contracts (e.g. rent) cannot be terminated without notice in the event of force majeure. The Corona epidemic does not regularly constitute good cause, since it was/is limited in time and, in view of a long contract term, does not make the continuation of the contract unreasonable. However, during this time, the conditions for an adjustment of the contract (rent reduction) are given.