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ARTICLE · 01 DECEMBER 2020

Would COVID-19 Provide An Excuse Not To Perform A Contract?

On 11 March 2020 the World Health Organization declared that the outbreak of COVID-19 is a pandemic, meaning the "worldwide spread of a new disease".

Hong KongCoronavirus (COVID-19)
ONC Lawyers
ONC Lawyers

Introduction

On 11 March 2020 the World Health Organization ("WHO") declared that the outbreak of COVID-19 is a pandemic, meaning the "worldwide spread of a new disease". Many countries have taken emergency measures such as quarantine, travel restrictions and special work arrangement, which have led to disruption to business, trading and travel, as well as closure of factories and schools. Facing the unprecedented challenges, some contractual parties are looking for ways to relieve themselves from performing their obligations under the contracts. This article will explore whether a force majeure clause in a contract or the common law doctrine of frustration may be of assistance to them.

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