Coronavirus (COVID-19): Force Majeure - An Act of War?

The Presidency of the United States, a very influential office, has described the fight against the Coronavirus (COVID-19) as a “war”: "I view the invisible enemy [coronavirus] as a war," he said. "I don't like how it got here, because it could have been stopped, but no, I view the invisible enemy like a war." If he can make that argument - perhaps you can use too.

By Osman Aboubakr

https://www.bbc.com/news/world-us-canada-52568405

The President of the United States, holding a very influential office, has described the fight against the Coronavirus (COVID-19) as a “war”: "I view the invisible enemy [coronavirus] as a war," he said. "I don't like how it got here, because it could have been stopped, but no, I view the invisible enemy like a war."

If he can make that argument - perhaps you can use it too.

Assuming you have no other stronger arguments, ask your General Counsel to check the Force Majeure clause in the contract at issue or the Force Majeure provision under the laws applicable to you - can you make an argument that you cannot perform the terms and conditions of your contract due to the effects on the economy arising from  the government in your jurisdiction waging a war against an “invisible enemy”?

Of course, you would still have to show that it was all unforeseeable, cannot nor could not have been mitigated and is causing you to default on or delay your performance.

Recent post

The Future of Workplace Culture

Janine, our head of Culture & Community, attended the 5th episode of the hybrid event series FLUID organized by ATÖLYE and LetsWork on the Future of Workplace Culture. The panel featured Randa Taher (Innovation Facilitator and Culture Designer), Missak Vehouni (Architect of Healthy Organizations) and Zein Al Nemri (VP People and Culture at Sarwa). The panel first highlighted the importance of culture for growing start-ups and alerted the attendees that start-ups could either proactively and thoughtfully design their culture or allow their culture to grow organically (by default).

Read more

Start a conversation

Contact US