Coronavirus And Its Impact On Your Contract - Can You Rely On 'Force Majeure'?

On 30 January 2020, the World Health Organization (WHO) declared that the outbreak of the Novel Coronavirus (officially the "COVID-19") was a Public Health Emergency of International Concern. The virus has been spreading rapidly both within China and globally in recent months. Both the Chinese government and other countries have adopted various measures aimed at containing the spread of COVID-19.

These measures are causing disruption to international trade and transport, with the consequence that many companies have found themselves either unable to perform their contractual obligations or at risk of not being able to do so in the future. Where affected or potentially affected contracts contain force majeure ("FM") provisions, the parties should consider if and when these provisions might be successfully invoked as a result of the COVID-19 outbreak.