FORCE MAJEURE, HARDSHIP AND CONTRACT ADAPTATION IN THE CONTEXT OF EU SANCTIONS AND GLOBAL CRISES

Abstract

Recent geopolitical developments, including the expansion of European Union sanctions, armed conflicts, and global economic disruptions, have significantly affected the performance of contractual obligations within and beyond the EU. These events challenge traditional doctrines of force majeure and hardship, raising questions about contractual stability, risk allocation, and judicial intervention. EU restrictive measures, in particular, create complex legal and factual scenarios: in some cases they may lead to contract nullity, in others they render performance legally or factually impossible, or cause serious economic or regulatory imbalance addressed through hardship. The primary objective of this study is to identify the principles and criteria courts should apply when assessing whether EU restrictive measures constitute grounds for contract nullity, force majeure, or hardship. The research also examines contract adaptation as a preffered remedial mechanism, highlighting circumstances in which courts may modify contractual terms based on good faith rather than terminate the contract. Methodologically, the study combines doctrinal legal analysis with a comparative approach, examining national legislation, supranational soft law instruments, and relevant case law, including proceedings related to the COVID-19 pandemic, where contracts were substantially hindered or rendered impossible. This allows identification of convergent principles as well as divergences in judicial interpretation. The paper is structured in six sections, covering the historical and normative framework of EU restrictive measures, contract nullity, force majeure, and hardship. The findings provide answers to the research question and highlight the principles and criteria that courts can follow in assessing the legal effects of EU restrictive measures. Overall, the study contributes to debates on the adaptability of obligations law and emphasizes contract adaptation as a mechanism for preserving legal certainty and economic resilience under extraordinary circumstances.