Supreme Court: Coronavirus is an emergency situation regarding compliance with contractual obligations

Supreme Court: Coronavirus is an emergency situation regarding compliance with contractual obligations

The General Assembly of Saudi Arabia's Supreme Court has accorded its approval to consider coronavirus pandemic as an emergency situation if it is not possible to fulfill a commitment or implement contractual obligation without incurring unusual loss, and force majeure if implementation becomes impossible.Okaz/Saudi Gazette has learned from well-informed sources that the court has directed to write off delayed rents due to the pandemic and review contracting conditions.The new regulations, issued by the Supreme Court, stipulated five conditions for applying the principle to affected contracts and obligations.This will be applied if the contract was concluded before the start of the precautionary measures to stem the spread of coronavirus and continued implementing it after its occurrence.Another condition is that there had been a direct impact of the pandemic on the contract and that was unavoidable. Similarly, the impact of pandemic on the contract is not dependent on anything else or not sharing with another reason.The conditions also include that the affected person has not waived his right, and that