COVID-19 And Force Majeure

COVID-19 has been declared as a "pandemic" by the World Health Organisation on 11 March 2020. Given the supply chain disruption caused by the pandemic, it is likely that several contractual obligations are impeded by this pandemic. The COVID-19 pandemic has led to a scenario where the performance of contracts has either become extremely difficult, or contracts have been rendered completely incapable of being performed. It is therefore imperative to analyze whether COVID-19 will qualify as a force majeure event.

Force majeure translates literally from French as superior force. Force majeure is a contractual provision that is usually agreed upon by parties to a contract. Force majeure means extraordinary events or circumstances beyond the control of parties to a contract and typically includes events described as act of god or natural disasters, war or war-like situations, labour unrest or strikes, epidemics or pandemics. The intention of a force majeure clause is to