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ARTICLE · 02 APRIL 2020

COVID-19: Force Majeure And The Supply Chain

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We are all now feeling the damaging impact of the rapid spread of the coronavirus (Covid-19) pandemic. This includes businesses who are seeing unprecedented effects across their operations

CanadaCoronavirus (COVID-19)
David Lowe
David Lowe
Rachel Pennell
Rachel Pennell
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We are all now feeling the damaging impact of the rapid spread of the coronavirus (Covid-19) pandemic. This includes businesses who are seeing unprecedented effects across their operations, including through their supply chains.

Disruption in global supply chains may mean that businesses are unable to supply their customers, which poses a real threat to corporates.

Businesses will then be looking to their contracts to understand what happens if: (a) they cannot perform and/or (b) their counterparties cannot perform (or say they cannot).

In particular, can you or your supplier rely on a force majeure clause or the common law doctrine of "frustration"?

Force majeure! Step by step

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