COVID-19 & Force MajeureMay 5, 2020
In light of the Coronavirus and its impact on the global economy, there are many businesses that will need to seek advice as to the application of ‘force majeure’ clauses, if any, on their supply and commercial agreements.
A force majeure clause in the Contract relies on unforeseeable events and circumstances that can impact and effect the performance of obligations under a contract.
It is not yet known whether the Courts will consider Coronavirus as a supervening event under the contract, and if that be the case, what steps would need to be taken to ensure that a ‘force majeure’ clause is properly invoked.
It is important that you act promptly to:
- review your commercial contracts and seek advice on potential options available to you including the application of ‘force majeure’ provisions or frustration;
- contact your suppliers and seek updates on their business continuity plans to ascertain what processes you may need to put into place to combat lack of supply;
- contact your insurance broker to see whether you have any policy of insurance that may respond in the current circumstances, and whether notifications are necessary;
Contact SKM Lawyers and let our experienced and dedicated legal team guide you.
Our legal advice is thorough, up to date and accurate. If we do not know an answer immediately, we will find it out for you.