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ARTICLE · 20 MARCH 2020

Contractual Risks Amid The COVID-19 Outbreak

Borden Ladner Gervais LLP
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The novel coronavirus (COVID-19) outbreak is causing widespread social and economic uncertainty. Amongst other commercial effects, it has led to travel restrictions...

CanadaCorporate/Commercial Law
Justin Yee
Justin Yee
Hugh Meighen
Hugh Meighen
Barbara Walker-Renshaw
Barbara Walker-Renshaw
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The novel coronavirus (COVID-19) outbreak is causing widespread social and economic uncertainty. Amongst other commercial effects, it has led to travel restrictions, workplace disruptions and global supply chain issues. The reality of unexpected events, such as the spread of COVID-19, raises questions as to the operation of force majeure clauses. As the Supreme Court of Canada has explained,1 force majeure or "act of God" clauses generally operate to discharge a contracting party when a supervening, sometimes supernatural, event beyond the control of either party makes performance impossible. The common thread is that of the unexpected—something beyond reasonable human foresight and skill.

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