The Coronacrisis and Its Impact on Creditors: Frustration of Purpose

Abstract

French and Belgian law merely offer doctrines that allow for the dislocation of the risk a party bears in its capacity of debtor, namely the risk of impossible or more onerous performance of obligations. Both legal systems are debtor centrist in that regard. In light of the socio-economic crisis following the outbreak of the coronavirus SARS-CoV- 2, this debtor centrist approach appears to be insufficient. The present article argues that this insufficiency is due to the debtor centrist approach and could be resolved by allowing for a doctrine that takes the materialization of the creditor risk, the frustration of purpose, into account. As German law, but also Dutch and English law, provide, such an approach exists and proves more apt to deal with contract cases arising under the current crisis.