Due to the Covid-19 pandemic, the French Government has adopted Order No. 2020-306 of 25 March 2020 as amended and completed by Order No. 2020-427 of 15 April 2020, which aims, amongst other things, to suspend certain penalty mechanisms for breach of contract and to extend the time limits relating to contract termination and renewal.
Article 4 of the Order provides that in the event of a breach of contract occurring between 12 March 2020 and the date falling one month after the end of the state of Health Emergency (the “Protected Period“), the affected party will not be able to claim penalty payments or to benefit from penalty clauses, resolution clauses and acceleration clauses intended to sanction such a breach.
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