6/1/2020
On May, the Brazilian Senate voted the Bill No. 1,179 / 2020, that created the Emergency and Transitional Legal Regime for Legal Relations (RJET) during the COVID-19 pandemic. Get to know the main measures imposed by the text.
Companies issues
This bill deals with the possibility of holding virtual meetings by electronic means, as well as issues related to the termination, resolution and review of contracts.
In line with Provisional Measure No. 931, the text allows General Meetings to be held by electronic means until October 30, 2020. In addition, the document establishes that any meetings or assemblies can only be held in person if allowed by local authorities.
This bill also deals with situations of resolution and review of contracts during the pandemic period. According to the text, the eventual increase in inflation, the exchange rate variation, the devaluation or the replacement of the monetary standard, cannot be used as arguments by the contracting parties for the termination of contracts due to excessive costs, nor the renegotiation of contractual obligations due to facts unpredictable.
Consumer protection
The bill No. 1,179 provides that any restrictions on contractual reviews are not applicable in cases where there is a provision for review of contracts due to the Consumer Protection Code and the Leasing Law.
The document also contains measures in relation to the Leasing Law, stating that, for urban property leases, in case of eviction actions filed from March 20, 2020, it is not possible to decree an injunction to vacate the property until October 30 2020.
In addition to these points, the document also deals with matters related to cargo transportation, suspension of the right of regret provided for in the Consumer Protection Code in cases of delivery of food and medicines, permission for condominium assemblies also by way digital, as well as the granting of other powers to the superintendent of said condominiums, issues related to the General Data Protection Law (LGPD), as well as issues related to family law.
The Bill No. 1,179 was sent to the President of the Republic to approve or veto (in whole or in part).
The Corporate area team at L.O. Baptista remains available to clarify any doubts.
