The novel Coronavirus (COVID-19) was first reported in Wuhan, China, on December 31, 2019, and has been rapidly spreading since. Now the outbreak has been declared a pandemic by the World Health Organization (W.H.O). The extent to which specific events relating to COVID-19 trigger a particular force majeure clause is a matter of contractual interpretation, and will turn on the precise language of the clause and the factual circumstances of each case.

Generally, parties which are in default or are considering potential default under the provisions of a contract due to COVID-19 must consider the following:

1. Does COVID-19 qualify as a force majeure event in the party’s particular situation under the force majeure clause?
2. Has COVID-19 impacted the party’s ability to perform its obligations under the contract?
3. What effect does the force majeure clause have on the parties’ contractual obligations?

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