Contracts vs coronavirus: Are you covered by force majeure?

And other legal questions answered.

by David Roney, Dorothee Schramm and Katie von der Weid

One of the great uncertainties of the coronavirus pandemic is what it will mean for your contractual obligations. Many businesses will find themselves unable to meet orders in time, while others will struggle because their suppliers can’t. 

Businesses can be spared liability if the force majeure clause in their contract is successfully invoked - i.e. where an extraordinary, unforeseen, unavoidable event is found to have made it impossible for them to have reasonably met their obligations.

In the article below, first published on our sister title Supply Management, lawyers from Sidley Austin answer questions on what constitutes force majeure, are you covered, how is it affected by different legal jurisdictions and what you should do next. 

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