Impact of COVID-19 on contractual obligations
Every business around the world irrespective of location, size and nature of business has been deeply impacted with the unprecedented situation we are in with Covid-19. This has greatly challenged businesses with supply chain, business continuity and performing the contractual obligations With uncertainity prevailing all over, it is time for all businesses to relook into their contracts to understand what are their obligations across their contracts and the amount of risk they can be entitled if they fail to perform as per the agreed provisions. Typically all contracts have some sort of language that allows businesses to seek relief from performing the obligations or postpone or modify and it solely depends on the exact language used in the contract and what is covered. Some contracts use the term Force Majeure which actually means an event that can neither be anticipated nor controlled and in most cases the force majeure clause covers events like natural disasters including Earthquakes, Hurricanes along with strikes, Government orders, etc. There can be some contracts that also include Covid-19 situations like epidemics or pandemics. It is not necessary that the clause has to be named as Force Majeure and there are several similar terms across contracts like u201cActs of Godu201d, u201cevents beyond controlu201d, quarantine or a catch-all clause addressing an event that prevents performance. visit now: https://blogs.docskiff.ai/impact-of-covid19-on-contractual-obligations/
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