COVID-19: Trading Contracts FAQs

Is the COVID-19 pandemic a force majeure event?

It is important to note at the outset that there is no general doctrine of force majeure recognised in English law; it is a matter of contract. Whether or not the COVID-19 outbreak constitutes a force majeure event, therefore, will depend on the provisions of the contract and their interpretation.

Key considerations are as follows:

• Is a force majeure clause included in the contract? Are there provisions that:
  • anticipate an event beyond the parties' control that may affect performance of contractual obligations; and
  • seek to relieve one or both parties from so performing the same?
• What is the definition of force majeure for the purposes of such clause?
  • Is it defined in broad terms, referring to 'any event beyond a party's reasonable control'?