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ARTICLE · 08 APRIL 2020

Do force majeure clauses apply to the coronavirus pandemic?

Can coronavirus be classified as a force majeure (FM)? Is FM automatically invoked by this virus? Are FM clauses implied?

AustraliaCoronavirus (COVID-19)

Force majeure, also known as an "Act of God", is an unforeseeable event beyond the control of either party to a contract, that prevents or hinders either side from meeting its contractual obligations. Translated from French as "superior force", it can relate to lightning, earthquakes, war, tsunamis, riots or any natural disaster.

A contract citing force majeure usually outlines a full list of possible events that could prevent a contract being carried out, including an Act of God.

So, does coronavirus (COVID-19) fall under a force majeure clause? It's a powerful and destructive force that's having a tragic impact across the world, forcing businesses to close down and smashing entire economies.

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