Contracts and the coronavirus crisis : emergency policy responses between preservation and disruption

Abstract

As of late spring 2021, three major Covid-19 waves have hit Europe. These waives were accompanied by three generations of emergency policy responses taken by national and supranational governments, consisting of containment and closure measures, economic measures, and health measures. Against this backdrop, the coronavirus crisis creates a wide variety of contract-specific problems. One key strategy to solve contract-specific problems during the coronavirus crisis is the preservation of a contract. The other key strategy to solve contract-specific problems during the coronavirus crisis is the disruption of a contract, in one way or another. Using a legal theory and law and economics approach, this article deals with the research question, whether emergency policy responses will pay off or cause even more harm in the long term. The article further aims to assess the impact of different generations of emergency policy responses on contract law in order to inform the ongoing debate in law and politics. This is important because any intervention in a functioning system increases complexity and creates a new equilibrium that may be inferior.