[Contract] – Do you need to perform your contractual obligations during the Coronavirus Pandemic? A quick look at the force majeure clause.

[Contract] – Do you need to perform your contractual obligations during the Coronavirus Pandemic? A quick look at the force majeure clause.

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Carrying out business as usual has been made difficult for everyone during the Coronavirus (COVID-19) Pandemic. It may also have affected your ability to perform contractual obligations.

In this article, we will look into force majeure clause and see if it can protect you in the current situation. A force majeure clause is a contract provision which allows a party to the contract to suspend or terminate the performance of his or her contractual obligations when circumstances beyond the person’s control arise. Typical elements addressed in the clause include: definition of force majeure events, what happens when one of the events defined occurs and how to successfully invoke the clause.

So, does the clause protect you from the coronavirus situation? IT DEPENDS!

First thing you need to do is to read through your contract thoroughly.

  1. Take a look at how “force majeure” is defined in your contract.

Disclaimer: The article is for reference only and should not be construed or relied on as legal advice in whatsoever manner. Please engage a solicitor to seek formal legal advice. LegalClarus does not provide legal advice.

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