The outbreak of coronavirus (also known as COVID-19) is having a significant impact on the ability of businesses to perform their contracts. As of 03 March 2020 there have been 2809 cases reported and 56 deaths. It is very likely to get much worse 
in the UK before it gets better. Businesses have to be prepared and employer’s and employees need to know their terms of contract in the event of having to spend time away from work and/or workplace.
Do your business contracts have force majeure protection (or exposure)? Here are FOUR bite-sized points to note:
1. Force majeure clauses are used to excuse or delay performance where unforeseeable circumstances prevent a party from fulfilling a contract. They are typically used in long-term or ongoing supply/service contracts.
2. Whether or not the outbreak of coronavirus will excuse or allow you (or your counterpart for that matter) to delay the performance of the contract will depend on the ter
ms of your contract, which should be looked at closely.
3. To rely on a force majeure clause, you (or your counterpart) must be able to show that non-performance of the contract is due to the coronavirus outbreak. In other words, you (or your counterpart) must otherwise be ready, willing and able to perform the contract.
4. Even if force majeure is available, there may be commercial or other reasons not to use it.
If you’re unsure of your legal position, please take specific advice.
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