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The Impact of Covid 19 on Commercial Contracts

The Covid 19 pandemic has caused an unprecedented level of disruption to both the personal and professional lives of all. An area that is now being brought into sharp focus, are the rights and obligations of businesses under the terms of their commercial contracts.

The daily disturbances in supply chains, and staff shortages caused by self-isolation protocols, is making it increasingly more difficult for businesses to fulfil their contractual obligations. However, some protection may be available if those contracts contain force majeure clauses. Force majeure clauses, are clauses within a contract which alter parties’ obligations and/or liabilities under a contract when an extraordinary event or circumstance beyond the parties’ control, prevents one or all of them from fulfilling those obligations.

Depending upon the specific wording of the force majeure clause, it may allow an affected party to delay performance of the contract, provide extensions of time and in some circumstances giving the affected party the right to terminate the contract.

If a force majeure clause is not part of the contract, there are still other options available to a party concerned about its ability to perform their role in the contract and the implications of not doing so.

At Rubin Lewis O’Brien, our expert team are able to provide you with advice and guidance in relation to your commercial contracts, and will endeavour to find a solution for you that has the least impact upon your business. For more information or to make a telephone appointment, please contact our Dispute Resolution Team on 01633 867000 or email at info@rlo.law


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