Material change of the circumstances or, in other words, when the parties' fair assumptions before entering the contract have proved wrong, the agreement can be amended or terminated under consent of the parties' consent, unless otherwise provided by the contract or stems from the essence of the obligation (Part 1 of Article 652 of Civil Code of Ukraine).
The agreement can be terminated or amended by the court decision (if the termination of the contract is contrary to public interest or causes damage to the parties that significantly exceeds the costs necessary to fulfill the contract on terms modified by the court) on the request of the concerned party, provided the following conditions are observed (Article 652 of Civil Code of Ukraine):
- party(ies) assumed, while entering into the contract that such change of circumstances would not occur;
- the affected party, acting prudently and diligently, cannot remove a cause of the change;
- fulfillment of the contract would disturb the balance of the parties' property interests and deprive the affected party of everything it assumed to gain; and
- the essence of the contract or business practices does not place the risk of change of a circumstances on the affected party.
An example of a material change in circumstances can be an amendment of law (regulation), which prevents performance of the contract. In this context, implementation of quarantine regime in Ukraine makes it impossible for some commercial entities to conduct their activity in normal course: no need to deliver bricks and cement due to suspension of the construction works; inability to transport people to another region due to a lockdown of intercity communications, lockdown on performance to audiences of more than 10 people etc.
The Ukrainian courts do not recognize the change as a material if currency exchange rate fluctuates, macroeconomic outlook of the country is adjusted. As we mentioned above, neither of these circumstances can be recognized as a force majeure
The courts have recognized a change as a material, when the lease сontract had to be rescinded due to liquidation of the bank outlet, but only when the bank concerned was under the external temporary administration (insolvent). All three judicial instances concluded that material condition of the contract - its purpose had ceased to exist, namely, the bank could no longer use the leased premises in accordance with its charter.  We note that a moment of contract's termination depends on the process – if voluntary (extrajudicial), the termination date is at parties' will, while the adjudicatory termination can only be valid after the judgement will have entered into force, which may take several months– or even over a year.
In the vast majority of available practice, a significant change in circumstances occurred when the contract was concluded long in advance of the performance. For example, a food catering services has taken pre-payment but cannot fully operate under quarantine now.
 SCCU Regulation in docket N 51/106-30/381 dated 16.11.2011