Tag Archives: Contract

COVID-19 and Force Majeure



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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.

Benefits of Notarial Notice Deed in Mongolia



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A notarial notice deed is a legally enforceable document of a notary produced based on the payment proof during the notarization of contract with an aim to secure the return of money or property and secure the pledge.

If you have a notarial notice deed, you can easily settle the disputes related to the non-performance of the agreement because instead of undergoing three instances at court proceedings, the judge shall issue for you an order obliging the other party to perform the obligations under the Agreement.  Moreover, you can also save court costs ad there is no requirement to pay the State stamp duty as in the court litigations. Therefore, in case one of the Parties failed to satisfy the Agreement performance in good faith and on a voluntary basis, upon the submission of the judge order and the execution deed at the Executive agency of court decision within 7 days after the issuance of the execution deed an enforcement procedure for the performance of obligations under the Agreement shall be commenced.

And these are the requirements for the notarial notice deed that can save both time and money:

  • To have a provision in the Agreement stating that the Parties shall perform the obligations under the Agreement in “undisputable manner” ,
  • The Agreement and the documents shall be notarized,
  • Not more than 3 years shall have passed after the commencement of claim rights,
  • Parties shall have accepted /no dispute or conflict/ the payment under the Agreement,
  • There is no court decision regarding this same Agreement.