The Scope of Immunity with Contracts on the International Sale of Goods under COVID-19

Abstract

Purpose : In this paper, legal implications were presented by analyzing whether the COVID-19 pandemic corresponds to force majeure, which is the reason for immunity from violating trade contracts, and analyzing the scope of immunity in practical application. Research design, data, and methodology : For this study, prior studies on force majeure clause were reviewed, and the characteristics of international unification laws such as CISG, PICC, and PECL were analyzed to examine their applicability to COVID-19. Results : In contracts on the international sales of goods, it is common to have detailed provisions on Force majeure, and it is desirable for the contracting parties to freely modify the allocation of non-performance risks according to the circumstances of individual contracts. Conclusions : Even if force majeure such as the COVID-19 pandemic occurs, the contract should be observed through the principles of good faith and Hardship rather than the termination of the contract, and the Governing law should be specified in the contract.