COVID-19 – A Force Majeure Event Or Simply A Pandemic?

What is known to exist but is not visible is surrounded by mystery. It excites the imagination and people spin yarns about it. Though that is not true when it comes to novel coronavirus ("COVID-19"), the outbreak of which has been globally reported. COVID-19 has caused worldwide unprecedented disruptions to business operations; and the commercial turmoil continues. The pandemic has impacted the ability of companies around the globe to maintain steady operations and perform their respective contractual obligations.

Perhaps the companies in order to mitigate the impact related to delayed operation and non-performance of the contracts inter alia will take recourse to force majeure clause contained in their contracts. An extraordinary event or circumstance beyond human control such as event described as an act of God (like natural calamity), government restrictions or other extraordinary circumstances which prevent fulfilment of a contractual obligations would qualify as