- Russian Federation
- Federal Arbitrazh Court of the Volgo-Vyatsky District
ASSIGNMENT CONTRACT - BETWEEN TWO RUSSIAN COMPANIES – REFERENCE TO UNIDROIT PRINCIPLES TO INTERPRET AND SUPPLEMENT APPLICABLE LAW (RUSSIAN LAW)
NOTION OF FORCE MAJEURE – REFERENCE TO ARTICLE 7.1.7 OF UNIDROIT PRINCIPLES
Two Russian companies entered into an agreement for the transfer of obligations and the release of debts. When one of the parties failed to perform its obligations, it invoked a financial crisis as an excuse for its non-performance.
The court excluded that the financial crisis amounted to a case of force majeure because it did not meet the “inevitability” criterion. In support of its decision the court referred to both Article 401(3) of the Russian Civil Code and Article 7.1.7 of the UNIDROIT Principles.