We are faced with an extraordinary situation of military invasion, there is no income, and here we still need to pay the developer under the contract. What to do?
24 February 2022. On this day the President of Ukraine announced martial law (Decree No No64/2022)
Many were forced to leave their homes, cities and evacuate to more remote regions from the theater of military operations in our Ukraine, some went abroad.
Ukrainians lost sources of income, faced restrictions on withdrawing foreign currency funds, access to bank safes.
Is war a force majeure?
Yes, war is a force majeure.
28 February The Chamber of Commerce and Industry of Ukraine confirmed the occurrence of such force majeure events on the territory of the country.
At the same time they simplified the procedure for confirming force majeure. For such confirmation, it is NOT required to contact the Chamber of Commerce and Industry.
It is enough to download their official letter of 28.02.2022 - here is the link to it
Official letter of the CCI dated 28.02.2022 on Force Majeure
What does force majeure mean?
The occurrence of force majeure (circumstances beyond control) releases the party to the contract from liability for untimely or improper performance of obligations under the contract.
That is, force majeure does NOT relieve the buyer of the apartment of the obligation to pay under the contract. Force majeure relieves the buyer of liability for late payment under the contract.
In other words, payment for the purchased apartment is still necessary, you can simply make it later, after the force majeure circumstances end.
What is the duration of force majeure and how does it affect the payment schedule?
With staged payment in the contract, a payment schedule with a deadline is provided. Upon the occurrence of force majeure, each future payment is shifted by the duration of such circumstances beyond control.
At the moment, the Chamber of Commerce and Industry has determined force majeure for a period of 30 days. If martial law in Ukraine lasts longer, then likely this period will be extended.
Let's consider an example. Suppose the military operation ends in less than a month and force majeure is not extended and amounts to 30 days (that is, until March 26, 2022).
For example, according to the payment schedule, three payments were due:
- March 1, 2022.
- April 1, 2022.
- May 1, 2022.
Then the new schedule taking into account the duration of force majeure circumstances will be:
- April 1, 2022.
- May 1, 2022.
- June 1, 2022.
How to notify the developer of the occurrence of force majeure circumstances
First, it is necessary to study the clause on the occurrence of force majeure circumstances in the contract with the construction company. It usually provides the procedure in case of occurrence of force majeure circumstances and specifies a list of such circumstances beyond control.
By usual practice in contracts, it is provided that the Buyer must notify in writing of the occurrence of force majeure.
In today's situation, when postal operators and offices of
Odessa Developers may be closed, we recommend sending a notice of the occurrence of force majeure by e-mail to the address of the construction company. Such an address is recommended to be taken from the Contract or from the official website of the developer.
In the letter, indicate surname, first name, patronymic, number and date of the purchase agreement. Attach the official letter of the Chamber of Commerce and Industry on the occurrence of force majeure circumstances.
We are confident that this bloody war will end and a period of revival and reconstruction will come. We believe that all unfinished
