CORONAVIRUS IMPACT ON BUSINESS CONTRACTS

There are an increasing number of reports about global supply chains being impacted or disrupted as a result of the coronavirus (Covid-19 / 2019-nCoV) outbreak, with rippling knock-on effects on markets around the world. This situation is likely to strain 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 client guidance published by law firms and practitioners that may be of initial help with thinking through these questions, organised by jurisdiction, topic and industry. 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. To submit additional materials for referencing on this page, please write to us at info@delosdr.org.

INFORMATION BY JURISDICTION

China: see PRC, below

England & Wales, UK

Hong Kong

Indonesia

PRC (for Hong Kong, see above)

Singapore

UK: see for now England & Wales, above

Vietnam

INFORMATION BY TOPIC

General issue checklist

Accounting disclosures

Business continuity provisions

Change of circumstances

Disaster recovery provisions

Employement / labour law

Force majeure provisions / statutory force majeure

Frustration

Hardship