Abstract

The state of epidemic was established because of the COVID-19 pandemic. The state of epidemic involves all of the individual limitations introduced in Poland since March 2020. The state of epidemic had a huge influence on economic life. Because of this effect it can be considered as a premise for judicial modification of a contract under the rebus sic stantibus clause (Art. 357¹ of the Civil Code). The introduction of the state of epidemic means a fundamental change of circumstances. It was impossible to predict either individual limitations or the state of epidemic itself. Its unpredictability should be ranked higher in case of obligations made during the epidemic. In numerous sectors of the economy the state of epidemic caused excessive difficulties or the threat of enormous losses as a result of performing a contract. However, this premise of the rebus sic stantibus clause should be assesed in the context of individual cases. Some of the extraordinary regulations may impact judicial modification of contracts, especially those providing public support for the economy. Public support may alleviate the risk of losses and thus make the use of the rebus sic stantibus clause pointless.