Corporate Tax

As a result, our firm is receiving questions about the contractual rights (force majeure) and common law / statutory rights (frustration) available to deal with the consequences of these mitigation measures and COVID-19.

Family

Given the global nature of commercial business parties should always consider how unpredictable and uncontrollable problems such as Coronavirus, will be dealt with in their contracts.

Built Environment

Normally, the defined events that are required to occur are matters that are beyond the reasonable control of either party.Because force majeure clauses are the product of commercial agreement, the scope and effect of a force majeure clause is determined on a case-by-case basis, by reference to the wording of the clause and the relevant facts. We expect these issues to intensify. While parallels are being drawn to the previous outbreaks of sudden acute respiratory syndrome (SARS) in 2003 and the influenza H1N1-2009, each of which had profound short term impacts, there are signs that COVID-19 may ignite significantly greater impacts (economically, socially and politically). Legal consequences of the COVID-19 outbreak on contracts: force majeure and frustration Dispute Resolution Despite this, many nation states have reacted with robust mitigation measures, including closing borders, implementing a range of travel bans and engaging a myriad of internal domestic health and wellbeing procedures.We are already seeing impacts of COVID-19 (and the mitigation measures), on domestic and international trade and commerce, capital flows, tourism, and migration.

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In these instances, the clauses may specify which party is to retain the benefit of monies paid or work done under the contract upon termination. Frustration operates to bring a contract to an end in circumstances where an intervening, post-contract event, has occurred through no fault of the parties, which:Frustration is typically not easy to establish and has a narrow scope. Future of Law Some information may have been obtained from external sources, and we cannot guarantee the accuracy or currency of any such information.COVID-19 and electronic signing: the current state of playInvestor guidance in the time of the COVID-19 pandemicFocus on what words say: WA Court of Appeal confirms parental company guarantees ‘not as good as cash’Get the latest insights and updates direct to your inbox

This publication is introductory in nature. Force majeure is defined as a list of events and does not have any broader wording such as ‘without limitation’ or similar? You should always obtain legal advice based on your specific circumstances before taking any action relating to matters covered by this publication.

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