Did Your Contract Anticipate the Arrival of Coronavirus?

For CFOs, anticipating the “known unknowns,” or unexpected situations that could affect organization effectiveness, is a actuality of lifetime. In a world wide overall economy, in which companies are dependent on their abroad suppliers, these situations now involve health conditions and quarantines, such as the coronavirus.

Final December, a pneumonia outbreak in Wuhan, China was unknown to the planet. China responded to “COVID-19” with a quarantine of unprecedented scope, which has brought on throughout the world provide chain disruptions. As the virus spreads, and suppliers are unsuccessful to ship merchandise, we are probable to see a increase in contractual defaults as counterparties are unable to perform their obligations on a timely foundation.

Did your provide chain colleagues foresee the arrival of a coronavirus in their contracts? Does a world wide pandemic justification your effectiveness? Let’s appear at how the regulation may well reply these inquiries.

Power Majeure: A Contractual Excuse?

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