Suspending Contractual Performance In Response To The Coronavirus Outbreak

The recent outbreak of the coronavirus has quickly developed from a local to a global threat with tragic human losses that overshadow contemplations of its economic impact. However, the disease is likely to have a profound impact on business and underlying contractual relationships. It has been highlighted frequently that scenarios like the one we are currently witnessing bring the concept of force majeure into play (see here). As a vital mechanism to excuse a party's non-performance or justify termination of a contract, the question is: does the coronavirus constitute force majeure?

Force majeure

Force majeure can be (or in the case of English law, must be) a creature of contract. Also, certain civil law systems recognise the concept statutorily or in their jurisprudence.