This article explores the meaning of force majeure under
Australian law, provides guidance as to whether such clauses may be
triggered by the fallout from COVID-19, and highlights the need for
pre-emptive consideration by businesses for robust continuity
plans.
The first half of March 2020 has seen a dramatic escalation in
the disruptive impact of COVID-19 in Australia, and businesses are
undoubtedly feeling that impact – whether from absent staff
or quarantined offices, wide ranging travel restrictions on an
international level, or consumer uncertainty and an unstable stock
market. As the virus continues to spread, and the situation changes
on a seemingly hour-by-hour basis, it is likely that the full
extent of the virus has not been felt in Australia or
internationally, and this may mean that businesses are unable to
deliver on contractual obligations entered into before the current
pandemic made itself known.
