Author: Nadia Osborne
The Far East (and increasingly the rest of the world) is becoming aware of the dangers posed by the coronavirus. Given the wide-spread impact and restrictions on movement imposed by the Chinese government in an attempt to combat the virus, it is evident there will be interruptions caused to commercial contracts. In such circumstances it is prudent to consider parties’ contractual rights and obligations. This is likely to include the consideration of any force majeure clause as well as disaster recovery / business continuity plans. A force majeure clause is one which relieves a party from its contractual obligations if a particular eventuality outlined in the clause takes place. Invoking a force majeure clause will therefore depend on the wording of the clause. In the absence of any force majeure clause, under English law, the doctrine of frustration may apply.
If your business has been, or you consider may become, affected by the impact of the coronavirus, and you would like advice on your legal rights / obligations, please do get in touch.