A Study of effect of epidemic diseases on performance of financial contracts with emphasis on the principle of permanence of contract

Epidemic diseases have always been one of the major threats to human health; a recent example of this type of disease is Covid-19. This disease has created many problems in various fields, especially in the economic field; Contracts, as an essential tool of economic prosperity, were no exception to the impact of this ominous event. The widespread of the Covid-19 has led governments to adopt rules and regulations in various fields. These rules, which prevent the spread of the disease, cause the implementation of contractual obligations with long delays, the impossibility of fulfilling obligations that have been limited in time, and the cancellation of the purpose in some contracts or complex implementation. Such problems have caused much controversy. On the other hand, in every legal system, there are provisions in such incidents to the aid of judges, lawyers, and business people and to prevent or resolve disputes. This research attempts to review these legal solutions based on the contract principles, especially the principle of favor contracts.