Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 36
Denmark
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Contractual
Issues
What measures
have been taken
to reinforce
contracts?
Property
Have any changes
been made to
the laws around
property, rent and
enforcement?
•
The Danish government has not implemented any specific measures to reinforce
contracts.
•
While some countries have implemented specific legislation on force majeure, this is
not the case under Danish law. Accordingly, whether COVID-19 will constitute a force
majeure event under Danish law comes down to a case specific assessment of (i) the
legal framework, contracts etc. of the individual relationship, and (ii) the very specific
matters surrounding each case of non-performance, both in terms of geography,
business sector and market conditions.
•
However, part of the legislation adopted by the Danish government, as a
consequence of COVID-19, directly or indirectly affects contracts. As an example,
the Danish government has implemented two Executive Orders under which the
Danish Medicines Agency has a right to order Danish manufacturers, importers and
distributors to supply certain types of medical devices, personal protective equipment
and disinfectants to regions and municipalities against payment from the region or
the municipality. As the Danish Medicines Agency has a right to decide the terms of
payment and delivery, this may potentially have an impact on the companies’ ability to
enter into other contracts or fulfil existing contracts. Similarly, the Danish government
has implemented an Executive Order which gives the Danish Medicines Agency
authority to i.e. decide that prices on medicine may not rise.
•
For additional information about COVID-19 as force majeure event under Danish law,
view here.
•
For additional information about the Executive Orders under which the Danish
Medicines Agency can impose extensive obligations on companies, view here.
•
The Danish government has not introduced any changes to the laws around
property, rent and enforcement.
•
However, the Danish government had implemented a temporary ban on the opening
of shopping malls, department stores, arcades, bazaars etc. and places where food,
beverages or tobacco are served. These bans have raised a number of issues for
both lessors and lessees related to business leaseholds in the retail, catering and
tourist industries, i.e. whether the government actions constitute force majeure. It is
likely that the government actions can constitute force majeure in relation to some
of both lessor’s and lessee’s obligations under a lease agreement as (i) the fulfillment
of terms of the lease agreement can be impossible due to the extraordinary situation
created by the outbreak of COVID-19 virus and the bans imposed by the government,
and (ii) the extraordinary situation – at least for the lease agreements drafted prior to
the outbreak of COVID-19 virus – must be assumed to have been unpredictable for
the parties. As per 11 May 2020, these restrictions have been eased, and shopping
malls, department stores, arcades, bazaars etc. have now been allowed to reopen again, however, the opening is contingent upon adherence with guidelines
established by the Danish government. These guidelines stipulates i.e. how many
people are allowed to access the mall at once, that hand sanitizer should be available
at all times etc.
•
For additional information about the restrictions on business leaseholds due to
COVID-19 and the related issues for lessors and lessees, please view here.
Government measures in key jurisdictions
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