The continued spread of COVID-19 and governmental measures to
combat the pandemic will inevitably disrupt contracts. They will do
so in different ways, and depending on the specific situation,
various legal concepts may apply. Typically, parties in essence ask
if they are exempt from performing as contracted, if they are
exempted from damages, if they still need to perform, if it is
still possible to perform but performance has become more onerous
or whether the entire purpose of the contract is defeated.
Furthermore, parties may look for ways to exit the contract,
including a situation where the creditor anticipates the debtor
will no longer be able to perform at the relevant point in
time.
