Between Force Majeure And Hardship, Where Does Covid-19 Stand?

Following rapid spread of the novel coronavirus "Covid-19" that was first reported in the province of Wuhan, China in December, 2019, on 11^th of March 2020, the World Health Organization declared Covid-19 to be a pandemic.

The virus has spread internationally across the countries, which has led to the announcement of "emergency state" in some countries followed by a full lockdown as a way to contain the spread of Covid-19 in others, the latter did not have a health and social implications only but also economical and legal implications on businesses and contracts worldwide. Determination of legal implications of Covid-19 on contracts depends on defining the nature of the event, whether it is considered to be a force majeure or a hardship. Confusion, however, exists between force majeure and hardship as both are similar but different as stated below.