The 3rd Panel of the Brazilian Superior Court of Justice (STJ) ruled that exchange rate fluctuations caused by the Covid-19 pandemic, by themselves, do not constitute unforeseeable events sufficient to justify a judicial revision of business contracts denominated in foreign currency.
The case involved a Brazilian company that sought to revise contractual clauses with a foreign supplier, claiming that the sharp devaluation of the Brazilian real during the pandemic had disrupted the economic balance of the agreement and rendered its execution excessively burdensome.
However, the STJ rejected the request, emphasizing that international business contracts naturally involve currency risks, which are foreseeable and inherent to the nature of such agreements. The court noted that even in the face of global crises like the pandemic, exchange rate variation alone is not enough to establish excessive burden or the breakdown of the contractual foundation.
With this decision, the STJ reaffirms the importance of legal certainty and the binding force of contracts — particularly in business relationships where risks are anticipated and voluntarily assumed by the parties.
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