Corporate and Commercial
With the current 2019 neo-Coronavirus (2019-nCoV) epidemic spreading all over China, companies may want to escape their contractual obligations such as payment obligations or penalty fees. Chinese authorities have decided to take various measures to “city lock-down” and limit further contamination that prevent companies to perform contracts. Many contracts will be affected by factors such as factory operation, payment by customers, road blocks, etc. The purpose of this article is to analyze what legal mechanisms (force majeure / hardship / MAC clause) may be applicable during and after the epidemic, to relieve and mitigate liabilities caused by failure to perform contractual obligations. This Articles is related to our Practical Guide to handle Coronavirus Crisis.
24 February 2020