COVID-19 and Force Majeure

The current quarantine measures hold by the Government of Mongolia have become increasingly difficult for the legal entities and individuals conducting business operation in Mongolia due to the Coronavirus epidemic (COVID-19), which is being declared as a pandemic by the World Health Organization.

This recent quarantine creates the risk/problem that business entities will not able to timely fulfill their contractual obligations, such as loan payments, interest and rent payments etc.

In circumstances of force majeure and hardship, the situations which are unable to fulfill their contractual obligations are considered as respectful grounds. In this case, there will be issues that contractual parties have to deal with their obligations, responsibilities and risks to be distributed under the agreement.

Therefore, we provide our clients with legal service and support that seeks to overcome this difficult time with less harm and a release from contract liability in order to the respectful ground as force majeure. The evidence which allow to release the contractual obligation is the certificate proofing the force majeure.

The Mongolian National Chamber of Commerce and Industry (“MNCCI”) has entited to certify force majeure and hardship condition in accordance with the Article 6.6 of the Law on the Chamber of Commerce and Industry of Mongolia.

Therefore, in the event of unforeseen circumstances occurring between parties during the performance and fulfillment of the contract regardless of the  control or willing of the parties, the MNCCI provides a certificate proofing the force majeure and a hardship.

The business entity shall submit the following documents for the MNCCI for the certificate:

  • request letter
  • a notarized copy of the contract (in Mongolian)
  • a notarized copy of state registration certificate / incorporation certificate of business entity
  • other documents proving the force major and hardship situation

If you would like us to assess the rights and liabilities of your personal situation, please contact us to arrange a consultation with one of our experts.

Leave a Reply

Your email address will not be published. Required fields are marked *