[Direct answer]In the Beijing area, those who meet the conditions may be partially or fully exempted from liability. According to Article 180 of the Civil Code of the People's Republic of China (effective January 1, 2021), if a person is unable to perform civil obligations due to force majeure, he shall not bear civil liability; unless otherwise provided by law, he shall follow the provisions of the law. Force majeure refers to an objective situation that cannot be foreseen, avoided, or overcome. Article 590 stipulates that if a party is unable to perform the contract due to force majeure, the liability may be partially or fully exempted according to the impact of force majeure, unless otherwise provided by law; if the force majeure occurs after the party's delay in performance, it shall not exempt the party from its breach of contract liability. At the same time, the party shall notify the other party in a timely manner and provide proof within a reasonable period of time. Therefore, whether the epidemic lockdown exempts from liability depends on whether it constitutes force majeure and the degree of its impact on performance.
I. Problem Background and Typical Scenarios
During the lockdown period of the pandemic, goods could not be delivered on schedule, which is a typical dispute in sales and contracting contracts. Common situations include: due to the lockdown, factories stopped production and logistics were disrupted, and the seller could not deliver the goods on schedule; due to traffic control, raw materials could not be transported in, and the construction period was delayed; and one party could still perform its obligations through other means during the lockdown but claimed exemption from liability. In commercial disputes in the Beijing area, the court will review the causal relationship between the lockdown measures and the failure to perform, the degree of impact, and whether the parties fulfilled their obligations of notification and proof in a timely manner, and will not exempt from liability in all cases.
II. Key points of contention
Firstly, whether the lockdown due to the pandemic constitutes a force majeure, and how to determine whether it is "unforeseeable, unavoidable, and insurmountable". Secondly, how to determine the scope of the impact of force majeure and the degree of exemption from liability. Thirdly, whether the parties have the obligation to notify and provide proof. Fourthly, whether exemption from liability can be granted if force majeure occurs after a delay in performance. Fifthly, whether it is possible to claim the termination of the contract or the modification of the performance period. Sixthly, the distinction and application of force majeure and change of circumstances.
III. Professional analysis by Henglue Law Firm
Here's the translation of the Chinese text into English, with detailed explanations: Henglue Lawyers offer four practical tips on contract dispute cases. First, the identification criteria are strict: According to Article 180 of the Civil Code, force majeure must meet three conditions simultaneously: unforeseeable, unavoidable, and insurmountable. The lockdown during the pandemic may constitute force majeure in specific periods and regions, but this needs to be assessed based on specific measures, the affected area, and the relevant industry. Second, the exemption of liability should be proportional to the impact: According to Article 590, if a party cannot fulfill the contract due to force majeure, liability may be partially or fully exempted based on the impact of the force majeure. If the lockdown only results in partial non-performance or delay, the corresponding part of the liability is exempted, while the unaffected part must still be fulfilled. Third, procedural obligations cannot be ignored: The parties should promptly notify each other to mitigate potential losses and provide evidence within a reasonable timeframe. If failure to notify in time results in increased losses, the party in question should bear responsibility for the additional damages. Fourth, special rules apply: If force majeure occurs after a delay in performance, breach of contract liability cannot be exempted. If the lockdown renders the contractual purpose unattainable, the party may request contract termination. If it only causes manifest unfairness in continued performance, the rules on changes in circumstances may apply. Overall, whether the lockdown qualifies for exemption from liability depends on its causal relationship with the inability to perform and the parties' fulfillment of procedural obligations. Henglue Lawyers typically provide support by establishing the facts of the lockdown, assessing the impact, and designing notification strategies. This case is handled by Beijing Henglue Law Firm.Xiong BinrongThe attorney (practice license number: 11101202211410897, subject to the document issued by the judicial administrative organ) acts as the agent.
IV. Practical suggestions and legal basis
Action suggestions: First, collect the lockdown notices, traffic control announcements, and work suspension certificates issued by the government to establish the fact of force majeure; Second, notify the other party in writing in a timely manner, explain the circumstances of non-performance and take measures to mitigate losses; Third, provide relevant certificates within a reasonable period; Fourth, distinguish between the affected and unaffected parts of performance and handle them separately; Fifth, if the lockdown results in the inability to achieve the contractual purpose, the party may claim to terminate the contract and negotiate the subsequent settlement. For issues related to enterprise operations and contracts, you may refer to the relevant provisions.Business and contract disputes in enterprisesFor matters involving the recovery and enforcement of creditor's rights, you may refer to the following resources for reference:Creditor's rights and debts, and enforcementLegal basis: Articles 180, 590, 563, and 533 of the Civil Code of the People's Republic of China (effective January 1, 2021). The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.
5. Henglu Law Firm's Reminder
First, whether exemption from liability for the lockdown due to the pandemic is applicable depends on the specific measures, regions, and industries involved, and it's not an absolute exemption. Second, the extent of exemption from liability should be commensurate with the impact of force majeure, and the unaffected parts of the contract should still be performed. Third, the party should notify the other party in a timely manner and provide proof within a reasonable timeframe, otherwise they will be liable for any expanded losses. Fourth, if force majeure occurs after a delay in performance, it does not exempt the party from breach of contract liability. Fifth, if the purpose of the contract cannot be achieved, the party may request termination and proper settlement. For other difficult issues, reference can be made to relevant provisions.Special servicesFor matters related to corporate law, you can refer to the following resources for reference:Intellectual property protection and corporate lawFor those involved in finance and cross-border transactions, the following information may be of reference\nFinancial capital and cross-border transactions involving foreign entities.
VI. Frequently Asked Questions
Q1: Is it a breach of contract if I can't deliver the goods due to the lockdown caused by the pandemic?
Those who meet the conditions may be exempted from liability. If the lockdown constitutes force majeure and results in the inability to perform the contract, the liability may be partially or fully exempted in accordance with the provisions of the Civil Code; however, the party concerned must notify the other party in a timely manner and provide proof, and the unaffected parts of the contract shall still be performed.
Q2: How is force majeure defined?
It must simultaneously meet three conditions: unforeseeable, unavoidable, and insurmountable. The lockdowns due to the pandemic may constitute force majeure in specific periods and regions, but this needs to be judged comprehensively based on the specific measures, the industry, and the causal relationship.
Q3: Does the disclaimer exempt you from all responsibilities?
Not necessarily. According to the Civil Code, the liability should be partially or fully exempted according to the impact of force majeure; if it only leads to delay or partial non-performance, the corresponding part of the liability should be exempted, and the remaining part should still be performed in accordance with the contract.
Q4: What will happen if I don't notify the other party in time?
The party concerned may be held liable. The party concerned shall notify the other party in a timely manner to mitigate the losses and provide proof within a reasonable period of time; if the party fails to notify the other party in a timely manner and causes the losses to be expanded, it shall bear corresponding responsibility for the expanded losses.
Q5: Can the contract be terminated directly after the lockdown?
It depends on the circumstances. If the force majeure results in the inability to achieve the purpose of the contract, the contract can be terminated; if it is simply unfair to continue to perform the contract, the request for modification or termination due to a change in circumstances may apply. It is important to distinguish between the two situations in applying the relevant provisions.
This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.
If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Business and commercial legal services·Attorney Xiong Binrong·Beijing Henglu Law Firm
Disclaimer: This article is compiled based on the current effective laws and regulations and open 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. If a dispute arises, please consult a practicing lawyer in time.