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