• Creimerman Product Team

Contracts regulations in Argentina by COVID-19

Updated: a day ago



On March 29, 2020, the Decree of Necessity and Urgency was published regarding to the public emergency in economic, financial, fiscal, administrative, pension, tariff, energy, health and social matters established by Law No. 27,541.

On March 29, 2020, the Decree of Necessity and Urgency was published regarding the public emergency in economic, financial, fiscal, administrative, pension, tariff, energy, health and social matters established by Law No. 27,541.

In order to temper the economic crisis generated by COVID-19, the government saw the need to implement palliative measures that are reasonable and also temporary. To not only protect public health but also other sectors that are aggravated by the restrictive measures in force.


The International Covenant on Economic, Social and Cultural Rights, in its article 11 established that “The States Parties to the present Covenant recognize the right of everyone to an adequate standard of living for himself and his family, including food, adequate clothing and housing, and a continuous improvement of living conditions. The States Parties shall take appropriate measures to ensure the effectiveness of this right, recognizing for this purpose the essential importance of international cooperation based on free consent.” In turn, the measures follow the guidelines with the jurisprudential background and doctrine regarding the exercise of police power. At the same time, other countries have taken similar measures, to protect families and their property, such as the UNITED STATES that ordered the suspension of evictions and foreclosure for 6 weeks, among other countries.

The International Covenant on Economic, Social and Cultural Rights, in its article 11 established that “The States Parties to the present Covenant recognize the right of everyone to an adequate standard of living for himself and his family, including food, adequate clothing and housing, and continuous improvement of living conditions. The States Parties shall take appropriate measures to ensure the effectiveness of this right, recognizing for this purpose the essential importance of international cooperation based on free consent.” In turn, the measures follow the guidelines with the jurisprudential background and doctrine regarding the exercise of police power. At the same time, other countries have taken similar measures, to protect families and their property, such as the UNITED STATES that ordered the suspension of evictions and foreclosure for 6 weeks, among other countries.

In this specific case, the DNU comes to regulate the rental contracts, reaching all the housing and business locations, rural and professional, of recovered and small companies. The measure suspends all evictions in the national territory until September 30 of the same year, the execution of judicial sentences whose object is the eviction of real estate.


On the other hand, the rental contracts are automatically extended until September 30, from the ones that where expired since 20 of March. Once the obligatory isolation has been lifted, the tenant can decide to leave early by letter document notifying 15 days in advance.

Regarding the debts that may be generated from the effective date of this decree and until September 30 of the current year, arising from non-payment must be paid in at least THREE (3) fees and a maximum of SIX (6), monthly, equal and consecutive, making the first one, on the same date of the expiration of the rental fee that contractually corresponds to the month of October of current year. Compensatory interest may be requested. Punitive or late interest, or any other penalty must not be required, and the obligations of the guarantor will remain in force until the total cancellation. The parties may agree on a different form of payment that cannot be more burdensome for the rental party than that the ones that are established.


Regarding the debts that may be generated from the effective date of this decree and until September 30 of the current year, arising from non-payment must be paid in at least THREE (3) fees and a maximum of SIX (6), monthly, equal and consecutive, making the first one, on the same date of the expiration of the rental fee that contractually corresponds to the month of October of the current year. Compensatory interest may be requested. Punitive or late interest or any other penalty must not be required, and the obligations of the guarantor will remain in force until the total cancellation. The parties may agree on a different form of payment that cannot be more burdensome for the rental party than that the ones that are established.


The measure takes into account the special position of the locator, available in its article 10, which excludes from this decree the location contracts whose locator part depends on covering their basic needs or those of their primary family group. This extreme tales must be credited.

The International Covenant on Economic, Social and Cultural Rights, in its article 11 established that “The States Parties to the present Covenant recognize the right of everyone to an adequate standard of living for himself and his family, including food, adequate clothing and housing, and continuous improvement of living conditions. The States Parties shall take appropriate measures to ensure the effectiveness of this right, recognizing for this purpose the essential importance of international cooperation based on free consent.” In turn, the measures follow the guidelines with the jurisprudential background and doctrine regarding the exercise of police power. At the same time, other countries have taken similar measures, to protect families and their property, such as the UNITED STATES that ordered the suspension of evictions and foreclosure for 6 weeks, among other countries.

The International Covenant on Economic, Social and Cultural Rights, in its article 11 established that “The States Parties to the present Covenant recognize the right of everyone to an adequate standard of living for himself and his family, including food, adequate clothing and housing, and continuous improvement of living conditions. The States Parties shall take appropriate measures to ensure the effectiveness of this right, recognizing for this purpose the essential importance of international cooperation based on free consent.” In turn, the measures follow the guidelines with the jurisprudential background and doctrine regarding the exercise of police power. At the same time, other countries have taken similar measures, to protect families and their property, such as the UNITED STATES that ordered the suspension of evictions and foreclosure for 6 weeks, among other countries.

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