Resource Page On Contractual And Legal Issues Arising From The Impact Of COVID-19 On Businesses
February-June 2020
In early February 2020 when this page was created, there were increasing reports of global supply chains being impacted or disrupted as a result of the coronavirus outbreak and COVID-19 pandemic, with rippling knock-on effects on markets around the world. This situation has been and is likely to continue straining a number of contractual relationships. By far the best approach is to discuss and document mutually acceptable solutions, which also protect the security and health of all staff potentially at risk of exposure to the virus.
In the event of potential disputes, parties may wish to consider the impact of any force majeure, business continuity and disaster recovery provisions in their contracts and whether, under the governing law of said contracts, this may characterise a situation of impossibility or frustration – before taking any legal action. Parties may also wish to consider in advance the applicability of imprévision or similar legal doctrines, as well as any requirement of mitigation of damage.
Please find below a selection of English language client guidance published by law firms and practitioners during February-May 2020, which may be of initial help with thinking through these questions. The guidance is organised by jurisdiction, topic and industry (excluding notably labour / employment law and tax issues), with a final section referencing selected guidance published in languages other than English. Please note that (i) the selection has been performed on the basis of relevance, timeliness and suitability (i.e. no sponsorship involved), and (ii) this information is not legal advice and has not been independently verified by Delos. Any questions should be addressed to the relevant law firms / practitioners directly. For a large, unsorted, database of such guidance, organised by law firm and which can be filtered by publication title, see the Stanford Law School Covide-19 Memo Database.
While this page is no longer being updated as of 1 June 2020, we are still happy to receive comments and submissions of additional materials for referencing, at info@delosdr.org. This resource page was nominated for the Global Arbitration Review (GAR) Special Recognition Award for Response to the Coronavirus Pandemic, on 19 June 2020. Finally, and separately, Delos has also published (i) a checklist for holding hearings in times of COVID-19 (see here in Chinese) and (ii) a mapping of available resources on holding virtual hearings.
INFORMATION BY JURISDICTION
Global
- Discussion of force majeure in Austria, Belgium, Brazil, Bulgaria, China, Colombia, Croatia, the Czech Republic, England & Wales, France, Germany, Hungary, Italy, Luxembourg, Monaco, Peru, Poland, Portugal, Romania, Scotland, Singapore, Slovakia, Slovenia, Spain, Switzerland, The Netherlands, Turkey, Ukraine: CMS Expert Guide to Force Majeure
Australia
Austria
Brazil
China: see PRC, below, and materials in Mandarin, at bottom
Denmark
England & Wales, UK (incl. case law references)
- 7 Feb 2020, CMS: "Coronavirus and Force Majeure"
- 14 Feb 2020, Pinsent Masons: "Coronavirus: force majeure for Chinese contractors overseas"
- 26 Feb 2020, Baker McKenzie: "The Coronavirus and Force Majeure in Supply Contracts - English Law Perspective"
- 2 March 2020, Gide: "The impact of the new coronavirus (COVID-19) on international contractual obligations: force majeure under English law"
- 3 March 2020, Herbert Smith Freehills: "Is COVID-19 likely to be a valid basis for avoiding contractual obligations?"
- Accounting disclosures for public listed companies – 18 Feb 2020, Pinsent Masons: "Coronavirus disclosures guidance issued"
- Data protection – 24 April 2020, Dechert: "COVID-19 Coronavirus Business Impact: ICO Confirms Approach to Data Protection Enforcement"
- Good faith – 25 June 2020, Dechert: "COVID-19 and Duties of Good Faith Under English law"
France (see also materials in French at bottom)
- 12 March 2020, Reed Smith: "Coronavirus (COVID-19) and economic downturn: What impacts on the continuation of business relationships?"
- 23 March 2020, Debevoise: "French Law: COVID-19, MAE clauses, Force Majeure and Hardship" (once on page, open the PDF)
- 31 March 2020, Skadden: "Coronavirus/COVID-19: French Ordinance Enacts Moratorium on Statutes of Limitations, Procedural and Contractual Deadlines"
- 22 April 2020, Reed Smith: "A “freeze” on the capacity to sanction contractual breaches: the Ordinance dated 25 March 2020 as amended on 15 April 2020 creates a “Super Force Majeure”"
Germany (see also materials in German at bottom)
- 26 Feb 2020, Skadden: "Coronavirus/COVID-19: Implications for Commercial and Financial Contracts"
- 25 March 2020, Dechert: "Impacts of COVID-19 on the Performance of Contracts Under German Law"
- [Data privacy]
- [M&A] 24 April 2020, Dechert: "Germany to Tighten Rules on Foreign Investment...Again"
Hong Kong
- 3 Feb 2020, Eversheds Sutherland: "Fighting the Coronavirus - Key Legal Challenges and Solutions"
- 4 Feb 2020, Simmons & Simmons: "Coronavirus - impact on business contracts"
- [Construction]
Indonesia
Italy
Mexico
Pakistan
PRC (for Hong Kong, see above)
- Introduction – 7 Feb 2020, Herbert Smith Freehills: "Is your contract affected by the novel coronavirus outbreak?"
- Go further –
- Supreme Court judicial guidance – 8 May 2020, Dechert: "China’s Supreme People’s Court Recently Issued its Judicial Guidance Opinions on Adjudication of COVID-19 Related Cases"
- See also, for a comparative view with Indonesia, Singapore and Vietnam – Feb 2020, DS Newsletter: "Coronavirus outbreak: how to deal with its potential impacts on business contracts in Asia? A comparative analysis in four Asian countries"
Russia
Senegal
Singapore
- Feb 2020, DS Newsletter: "Coronavirus outbreak: how to deal with its potential impacts on business contracts in Asia? A comparative analysis in four Asian countries"
- 16 April 2020, Herbert Smith Freehills: "COVID-19 Governance: New legislation provides temporary relief from performance for selected Singapore-related contracts (Singapore)"
Switzerland
UK: see England & Wales, above
UAE
USA
- 26 Feb 2020, Skadden: "Coronavirus/COVID-19: Implications for Commercial and Financial Contracts"
- 12 March 2020, Vinson & Elkins: "Does the COVID-19 Outbreak Constitute a Material Adverse Effect? Plus Other Impacts on M&A Transactions"
- 17 March 2020, Dechert: "COVID-19 Coronavirus: Will Global Pandemic Excuse Contractual Performance?"
- NY – 2 April 2020, Herbert Smith Freehills: "COVID-19: contractual implications and considerations under New York law"
- Accounting disclosures for public listed companies – 4 March 2020, Skadden: "Coronavirus/COVID-19 Update" and 12 March 2020, Vinson & Elkins: "SEC Disclosures Test Positive for Coronavirus"
- Data privacy – 20 March 2020, Reed Smith: "U.S. data privacy considerations: Using and disclosing data in the time of COVID-19" and 23 March 2020, Vinson & Elkins: "How to Ask About COVID-19: Privacy Considerations"
Vietnam
INFORMATION BY TOPIC
General
- [General issue checklist] 10 Feb 2020, Herbert Smith Freehills: "Coronavirus Outbreak: Legal Update"
- [Contractual notion of 'business day'] 25 March 2020, Herbert Smith Freehills: "Does COVID-19 impact the timing of your contractual obligations?"
- [Academic] 20 April 2020, Klaus Peter Berger and Daniel Behn: "Force Majeure and Hardship in the Age of Corona: A Historical and Comparative Study"
Accounting disclosures
- [UK] [Public listed companies]
- [US] [Public listed companies]
Antitrust
Business continuity provisions
- [England & Wales, Hong Kong, PRC]
Change of circumstances
- [CISG]
- [PRC]
- [USA]
Data protection
- [EU]
- [Germany]
- [PRC, HK, Singapore]
- [UK]
- [USA]
Disaster recovery provisions
- [England & Wales, Hong Kong, PRC]
Force majeure provisions / statutory force majeure
- [Global] [Discussion of force majeure in Austria, Belgium, Brazil, Bulgaria, China, Colombia, Croatia, the Czech Republic, England & Wales, France, Germany, Hungary, Italy, Luxembourg, Monaco, Peru, Poland, Portugal, Romania, Scotland, Singapore, Slovakia, Slovenia, Spain, Switzerland, The Netherlands, Turkey, Ukraine]
- [Denmark]
- [England & Wales (incl. case law references), Hong Kong]
- 7 Feb 2020, CMS: "Coronavirus and Force Majeure"
- 14 Feb 2020, Pinsent Masons: "Coronavirus: force majeure for Chinese contractors overseas"
- 26 Feb 2020, Baker McKenzie: "The Coronavirus and Force Majeure in Supply Contracts - English Law Perspective"
- 2 March 2020, Gide: "The impact of the new coronavirus (COVID-19) on international contractual obligations: force majeure under English law"
- [France]
- 12 March 2020, Reed Smith: "Coronavirus (COVID-19) and economic downturn: What impacts on the continuation of business relationships?"
- 23 March 2020, Debevoise: "French Law: COVID-19, MAE clauses, Force Majeure and Hardship" (once on page, open the PDF)
- 22 April 2020, Reed Smith: "A “freeze” on the capacity to sanction contractual breaches: the Ordinance dated 25 March 2020 as amended on 15 April 2020 creates a “Super Force Majeure”"
- [Germany]
- [Indonesia]
- [Italy]
- [Pakistan]
- [PRC]
- Introduction – 7 Feb 2020, Herbert Smith Freehills: "Is your contract affected by the novel coronavirus outbreak?"
- Go further –
- Supreme Court judicial guidance – 8 May 2020, Dechert: "China’s Supreme People’s Court Recently Issued its Judicial Guidance Opinions on Adjudication of COVID-19 Related Cases"
- See also, for a comparative view with Indonesia, Singapore and Vietnam – Feb 2020, DS Newsletter: "Coronavirus outbreak: how to deal with its potential impacts on business contracts in Asia? A comparative analysis in four Asian countries"
- [Russia]
- [Senegal]
- [Singapore]
- [Switzerland]
- [UAE]
- [USA]
- [Vietnam]
- [Sports law]
Freedom of expression
Frustration
- [Austria]
- [England & Wales, Hong Kong]
- [USA]
- [Pakistan]
Good faith
Hardship / imprévision
- [Germany]
- [France]
- 23 March 2020, Debevoise: "French Law: COVID-19, MAE clauses, Force Majeure and Hardship" (once on page, open the PDF)
- [PRC]
Impracticality and/or impossibility of performance
- [Austria]
- [USA]
Insolvency
- [UK]
- [Italy]
- [Singapore]
Investment Treaty
- 30 March 2020, Federica Paddeu and Kate Parlett (Kluwer Arbitration Blog): "COVID-19 and Investment Treaty Claims"
- April 2020, UNCTAD: "Investment Policy Monitor" (Issue 23)
Material Adverse Change (MAC) / Material Adverse Effect (MAE) clauses
INFORMATION BY INDUSTRY
Banking and Finance
- 3 Feb 2020, Eversheds Sutherland: "Fighting the Coronavirus - Key Legal Challenges and Solutions"
- 10 Feb 2020, Herbert Smith Freehills: "Coronavirus Outbreak: Legal Update"
- 10 March 2020, Simmons & Simmons: "COVID-19 and its potential impact on trade finance"
- 23 March 2020, Dechert: "COVID-19 as an MAE in English Law Loan Agreements"
- 31 March 2020, Herbert Smith Freehills: "COVID-19: is a temporary suspension of business due to COVID-19 an event of default?"
- Regarding potential securities litigation issues
Charter Parties
Construction
- [Global] [Discussion of the impact of COVID-19 on the construction industry in Austria, Bahrain, Belgium, Brazil, Bulgaria, Chile, China, Croatia, the Czech Republic, Denmark, Finland, France, Germany, Hungary, Ireland, Italy, Mexico, Monaco, Oman, Peru, Poland, Portugal, Romania, Russia, Saudi Arabia, Scotland, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, The Netherlands, Turkey, Ukraine, United Arab Emirates, United Kingdom]
- 14 Feb 2020, Pinsent Masons: "Coronavirus: force majeure for Chinese contractors overseas"
- 11 March 2020, Blake Morgan: "COVID-19: Who bears the contractual risk for construction project delivery?"
- 31 March 2020, White & Case: "How should the impact of the COVID-19 outbreak be managed on projects under FIDIC and NEC?"
- April 2020, FIDIC: "FIDIC COVID-19 Guidance Memorandum to Users of FIDIC Standard Forms of Works Contract"
- [Germany]
- [Hong Kong]
Energy
- [LNG]
- [Solar projects]
Entertainment & Media
- March 2020, Simmons & Simmons: "Trusting the internet: An overview of anti-disinformation laws"
- [USA]
Environment
Insurance
- [Australia]
- [UK]
Life sciences
- 6 March 2020, Reed Smith: "India restricts drug exports over Coronavirus fears and international arbitration claims are likely to follow"
- 11 March 2020, Dechert: "COVID-19: International Trade Navigation"
- 6 April 2020, Reed Smith: "India rescinds exemptions to hydroxychloroquine export restrictions and increases the probability of international arbitration claims"
- 10 April 2020, Reed Smith: "India reverses pharmaceutical export restrictions shortly after imposing them"
M&A
- General – 17 March 2020, Simmons & Simmons: "COVID-19 impact: M&A and other corporate transactions"
- MAC / MAE
- Protection from takeovers
- 16 April 2020, Reed Smith: "European Countries Increase Protections against Foreign Takeovers amid COVID-19 Crisis"
- 19 April 2020, Reed Smith: "M&A Protectionism Following COVID-19 Pandemic Expands to India"
- 24 April 2020, Dechert: "Germany to Tighten Rules on Foreign Investment...Again"
- 1 May 2020, Skadden: "France Moves To Protect Strategic Assets Amid COVID-19 Pandemic"
- 7 May 2020, Chiomenti / Cuatrecasas / Gide / Gleiss Lutz: "Foreign investment controls in the main continental European jurisdictions"
Sports
Tech
Information in languages other than English
Chinese/Mandarin
French
- [Bénin]
- [France]
- 28 fév. 2020, Gide: "Quel impact du coronavirus sur la production d’énergie?"
- 16 mars 2020, Simmons & Simmons: "Covid-19 et force majeure après les mesures des 12 et 13 mars"
- 18 mars 2020, Simmons & Simmons: "Les entreprises françaises face au COVID-19"
- 28 mars 2020, Professeur Julie Klein (Le Club des juristes): "Les délais de prescription face à l’urgence sanitaire"
- 21 avril 2020, Gide: "Adaptation des règles en matière de contrôle des concentrations et pratiques anticoncurrentielles au niveau européen et français"
- 21 avril 2020, Gide: "L'impact du Covid-19 sur les relations entre fournisseurs et clients"
- 7 May 2020, Gide: "Lois de police et ordonnances 2020"
German
Portuguese
- [Brazil]
- [Portugal] PLMJ: "Coronavírus"
Spanish