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ARTICLE · 11 MAY 2020

Terminating or re-negotiating your contracts under COVID-19

Whether a contract caters for the current unprecedented environment depends on the terms and wording of the contract.

AustraliaCoronavirus (COVID-19)

The COVID-19 pandemic has substantially disrupted the operation of the Australian society and overseas. Supply chains are interrupted due to travel restrictions, the mode of business operation has changed overnight as a result of lock down rules, many countries are at the brink of an economic downturn and the ability for businesses to function "as usual" has been severely impacted. Many affected businesses are finding themselves asking questions regarding their contractual obligations: Can I terminate or re-negotiate an existing contract based on the circumstances brought by COVID-19? Or, how should I deal with breaches of existing contracts by the other party?

Whether a contract caters for the current unprecedented environment will depend on the terms and wording of the contract. There has been much discussion about "force majeure" and the doctrine of frustration, and it is important that businesses are aware of their rights and options when facing these

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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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