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Covid-19 | São Paulo Court of Appeals applies the theory of unpredictability and compares Covid-19 to “war times”
A preliminary ruling issued on 4/5/2020 by the 1st Business Chamber of the São Paulo Court of Appeals applied the theory of unpredictability due to the Covid-19 pandemic to allow a businesswoman to pay in 10 installments the amount due in April, May and June 2020 in a deal for the assignment of corporate shares.
The deal concerns the acquisition of shares in a commercial business that has been closed due to a Municipal Decree as preventive measure to counter the Covid-19 proliferation.
The Court’s decision considered that the restriction of business operations due to the pandemic affected the businesswoman’s results in an unpredictable manner, implying “momentary impossibility of paying the installments as per the agreement”.
Upon discussing the extraordinary current situation, the ruling compared the scenario under the Covid-19 pandemics to “war times”.
The full text of the decision in Portuguese can be accessed here.
