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ARTICLE · 12 APRIL 2020

COVID-19 & Contracts: Part 1 – Force Majeure

In Australia, the doctrine does not apply automatically, but most contracts should contain a 'force majeure clause'.

AustraliaCoronavirus (COVID-19)

Introduction

A global emergency like COVID-19 has not been seen in living memory. Countries are shutting their borders and confining citizens to their homes. Non-essential commerce is grinding to a halt and uncertainty hangs over the economy like a cloud.

So, what do you do when your supply chains dry up, your workers are confined to their homes and it becomes impossible to continue to perform your contractual obligations? What do you do when your suppliers tell you they are in this situation?

There are several legal concepts that you need to know about in this situation. In this article we deal with one of them – force majeure. Our next article will deal with the concept of a contract being frustrated.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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