COVID-19, force majeure and frustration

Key legal principles and industry implications
Patricia Robertson QC, Ben Lynch QC and Dr Deborah Horowitz, Fountain Court Chambers

Introduction

Around the world right now, companies – especially their in-house counsel – are pulling up from dusty databases the force majeure clauses of contracts. Often boilerplate, they have been rarely considered, because it is rare for an “act of God” or one of the other standard listed events to come up. Yet now, COVID-19 has arrived in full force. At a construction company, someone asks: “We haven’t yet received raw materials from China due to the lock-down and logistics issues: can we rely on the force majeure clause as an excuse for delay in our work?” In the pharmaceuticals sector, a representative poses the question: “Thanks to Trump, sales of Hydroxychloroquine are through the roof, and we’re struggling to satisfy orders: can we refer to force majeure or frustration as regards any failure to supply?”

If you are not a subscriber, subscribe now to read this content

If you are already a subscriber sign in

...or Register for two weeks' free access to subscriber content

COVID-19, force majeure and frustration

Key legal principles and industry implications
Patricia Robertson QC, Ben Lynch QC and Dr Deborah Horowitz, Fountain Court Chambers

Introduction

If you are not a subscriber, subscribe now to read this content

If you are already a subscriber sign in

...or Register for two weeks' free access to subscriber content

SourceURL:

Links:

E-newsletter Sign-Up

MOVERS & SHAKERS

Read All

NLJ Career Profile: Nikki Bowker, Devonshires

Nikki Bowker, head of litigation and dispute resolution at Devonshires, on career resilience, diversity in law and channelling Elle Woods when the pressure is on

Ellisons—Sarah Osborne

Leasehold enfranchisement specialist joins residential property team

DWF—Chris Air

Firm strengthens commercial team in Manchester with partner appointment

NEWS

Read All

NLJ this week: When post-breach events rewrite damages claims

Contract damages are usually assessed at the date of breach—but not always. Writing in NLJ this week, Ian Gascoigne, knowledge lawyer at LexisNexis, examines the growing body of cases where courts have allowed later events to reshape compensation

NLJ this week: Supreme Court redraws unfair prejudice rules

The Supreme Court has restored ‘doctrinal coherence’ to unfair prejudice litigation, writes Natalie Quinlivan, partner at Fieldfisher LLP, in this week' NLJ

NLJ this week: ‘Joe Donor’ ruling exposes dangers of unregulated conception

The High Court’s refusal to recognise a prolific sperm donor as a child’s legal parent has highlighted the risks of informal conception arrangements, according to Liam Hurren, associate at Kingsley Napley, in NLJ this week

NLJ this week: CILEX warns Mazur ruling must spark reform

The Court of Appeal’s decision in Mazur may have settled questions around litigation supervision, but the profession should not simply ‘move on’, argues Jennifer Coupland, CEO of CILEX, in this week's NLJ

NLJ this week: Conditional job offers carry hidden risks for employers

A simple phrase like ‘subject to references’ may not protect employers as much as they think. Writing in NLJ this week, Ian Smith, barrister and emeritus professor of employment law at UEA, analyses recent employment cases showing how conditional job offers can still create binding contracts

Error message

COVID-19, force majeure and frustration

Introduction

Introduction

MOVERS & SHAKERS

NLJ Career Profile: Nikki Bowker, Devonshires

Ellisons—Sarah Osborne

DWF—Chris Air