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ARTICLE · 22 JUNE 2020

Are your contracts crisis ready?

Holding Redlich
Holding Redlich
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With the COVID-19 pandemic and an intense climate emergency, entities should check their contracts are 'crisis ready.'

AustraliaCorporate/Commercial Law
Scott Alden
Scott Alden
Victoria Gordon
Victoria Gordon
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With the COVID-19 outbreak now declared a pandemic by the World Health Organisation (WHO) and the climate emergency intensifying, entities are looking at their contracts to see if they are 'crisis ready.'

As a result, force majeure, frustration and termination for convenience clauses have been brought into the spotlight, as entities consider what relief is available to them where they are unable to perform their contractual obligations due to the impacts of the recent bushfires, floods and global COVID-19 emergency.

Force majeure

A force majeure (literally 'superior force') clause allows one or both contractual parties to cease or suspend performance of a contract following the occurrence of a pre-defined event.

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This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

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