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ARTICLE · 24 MARCH 2020

COVID-19: Force Majeure Event?

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Following the rapid spread of the novel coronavirus ("COVID-19") that was first reported in Wuhan, China at the end of 2019, the World Health Organization declared COVID-19 to be a pandemic on March 11, 2020.

United StatesCorporate/Commercial Law
A&O Shearman
A&O Shearman
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Following the rapid spread of the novel coronavirus ("COVID-19") that was first reported in Wuhan, China at the end of 2019, the World Health Organization declared COVID-19 to be a pandemic on March 11, 2020.

In this note, we consider how force majeure provisions in commercial contracts and the related common law doctrine of frustration may be engaged in the context of the COVID-19 outbreak. While this analysis focuses primarily on the position under English law, we have included a PRC law perspective because of the significant impact COVID-19 has had on business in China. We also suggest steps that parties may take to safeguard their positions in view of the evolving situation.

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