[Direct answer]In the Beijing area, it depends on the actual impact of the epidemic situation and prevention and control measures on the performance of the contract. If the contract cannot be performed due to the epidemic situation or government prevention and control measures, the party may claim partial or full exemption from liability based on force majeure; if it is not impossible to perform the contract, but continuing to perform it would be obviously unfair to one party and meet the statutory conditions, the party may claim a change in circumstances and request to modify or terminate the contract. Whether to exempt from liability or adjust the contract depends on the extent of the impact of the epidemic situation and prevention and control measures on the performance of the contract, the causal relationship between the performance obstacles, and whether the parties have taken timely measures. The parties shall notify the other party in a timely manner, explain the situation of the obstacles and provide proof within a reasonable period of time, and take necessary measures to prevent the loss from expanding. Otherwise, the parties may bear the expanded losses themselves. The court will make a comprehensive judgment based on the nature of the contract, the stage of performance, the characteristics of the industry, and the extent of the impact, and tend to encourage negotiation and continued performance.

I. Problem Background and Typical Scenarios

The pandemic and prevention and control measures have had a significant impact on a wide range of contracts, including tourism, catering, leasing, performances, and commodity sales. This has led to a surge in disputes over refunds, rent reductions, contract extensions, and terminations. In practice, some contracts are indeed impossible to perform, while others simply face increased costs or declining profits. The rules for handling these two situations are completely different. When handling similar cases in the Beijing area, the court will review the nature and extent of the impact and, in accordance with the principle of fairness, reasonably allocate losses between the two parties.

II. Key points of contention

First, the nature of the situation—whether it constitutes force majeure, a change of circumstances, or general commercial risk. Second, the causality—whether the performance obstacle is directly caused by the pandemic and prevention measures. Third, the obligation to notify and mitigate damages—whether the parties promptly notified and provided evidence, and whether they took measures to prevent the loss from escalating. Fourth, the legal consequences—the scope of exemption from liability, contract modification or termination, and how to allocate losses.

III. Professional analysis by Henglue Lawyers

The key to handling contract disputes arising from the pandemic is to "first determine the nature of the dispute, then determine the liability". When handling such matters, Henglu Lawyers typically first analyze the impact of the pandemic and prevention measures on specific contracts: if it results in the objective inability to perform the contract, it constitutes force majeure, and the affected party may claim exemption from liability, but should promptly notify the other party and provide relevant evidence within a reasonable timeframe; if the contract can still be performed, but continued performance would be clearly unfair to one party, such as a lease contract where the tenant cannot afford the high rent due to a sharp decline in passenger flow, this may constitute a change of circumstances, and the parties may request a rent adjustment or contract termination. Secondly, review the performance of the notice and mitigation obligations: if the parties fail to notify in time or allow losses to expand, they may need to bear the expanded portion themselves, a point often overlooked in practice. Thirdly, evaluate fair sharing solutions: courts tend to guide both parties to negotiate, adopt measures such as fee reductions, deferral, or modification of performance to maintain the transaction rather than simply ruling on termination; for the performed portion, a reasonable allocation will be made based on the degree of performance, the benefits obtained, and the actual losses. It should be noted that claiming exemption or termination on the general grounds of "the pandemic" is usually difficult to obtain support, and it must be linked to specific prevention measures and performance obstacles, and supported by evidence such as government notices, lockdown announcements, business data, and communication records. If the involved parties breached the contract first or the contract already has clear risk allocation clauses, a comprehensive judgment based on the breach and contract provisions is necessary. For cases requiring termination, attention should be paid to the manner and time limit of exercising the right of termination, and timely claiming refund of payments or compensation for losses to avoid legal uncertainty.

IV. Practical suggestions and legal basis

The first step is to collect government notices, lockdown notifications, business data, and loss materials to determine the nature and extent of the impact. The second step is to promptly notify the other party in writing and explain the circumstances of the obstruction, and provide proof within a reasonable timeframe. The third step is to actively negotiate reduction, deferral, or modification of the contract, and take necessary measures to prevent the loss from expanding. The fourth step is, if no agreement can be reached, to claim exemption from liability, modification, or termination based on force majeure or changed circumstances, and pay attention to the time limit for exercising the right of termination and the preservation of evidence. The main legal basis: the relevant provisions of the Civil Code of the People's Republic of China on force majeure, changed circumstances, contract termination, and reduction of obligations; the specific application shall be subject to the currently effective laws, regulations, and judicial rulings. This case is handled by Beijing Henglue Law Firm.Xue SuhuaThe attorney (practice license number: 11101201211769926, subject to the certificate issued by the judicial administrative organ) acts as the agent.

5. Henglue Law Firm's Advice

For contracts affected by the pandemic, don't just invoke the term "force majeure". You need to clarify which measures led to the inability to perform the contract and provide supporting evidence. The Beijing Regional Court emphasizes the importance of establishing causality and fair burden-sharing. Parties involved in contract disputes can seek resolution through legal channels.Business and contract disputes in enterprisesWe provide a comprehensive solution for services, which includes the integration of property leasing and engineering projectsProperty sales and construction projectsFor reference, the sections related to the refund of funds and their execution are as follows:Creditor's rights and debts, and enforcementFor any questions related to the daily legal affairs of your company, please feel free to consult us.Intellectual property protection and corporate lawFor those interested in teams involving finance and cross-border fulfillment, please feel free to contact us for more information.\nFinancial capital and cross-border transactions involving foreign entities.Service.

VI. Frequently Asked Questions

Q1: Can I be exempt from liability if I'm unable to fulfill my obligations due to the pandemic?

It is possible to claim exemption from liability due to force majeure, but the party concerned should notify the other party in a timely manner and provide proof within a reasonable period of time, and it is necessary to explain the causal relationship between the epidemic situation and prevention and control measures and the performance obstacles.

Q2: What should I do if I can still fulfill the contract but end up losing money?

If it is still necessary to perform the contract that is obviously unfair and meets the statutory conditions, you may claim a change of circumstances, request a modification or termination, and actively negotiate with the other party for a mitigation plan.

Q3: Why don't you compensate me and instead ask me to provide evidence?

The party claiming exemption from liability or seeking a change in the contract bears the burden of proof for the impacting facts, and must provide evidence such as government notices, lockdown notifications, and materials showing operational losses to demonstrate the existence of performance obstacles.

Q4: Does it matter if we don't notify them in time?

Yes. If the failure to notify in a timely manner or to take mitigation measures results in the expansion of losses, the party may need to bear the responsibility for the expanded portion. It is essential to notify the other party in writing and keep records as soon as possible.

Q5: Can the lease contract reduce the rent?

It depends on the extent of the impact. If the sharp drop in passenger flow makes it unreasonable to continue the performance of the contract, the lessee may claim to modify the rent or terminate the contract. The court will usually reasonably share the losses based on the performance of the contract.

The above answer is based on the judicial practice in Beijing. The adjudication guidelines in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the necessary evidence, to avoid missing the statutory time limit. →Business and commercial legal services·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on current laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In the event of a dispute, please consult a practicing lawyer promptly.