Tuesday, 26th May 2020

The effect of Covid-19 on contractual obligations

Conexus Law, the specialist advisory firm that provides legal and commercial advice to clients who work in sectors where the built environment, technology, engineering and people converge, is launching a range of fact sheets on the legal implications of the Covid-19.

The first one provides legal analysis alongside some valuable, practical steps that may be taken by parties who find the impact of Covid-19 affects their ability to meet contractual obligations owed to others (upstream), or who find that their trading partners can no longer meet the obligations owed to them (downstream).


Ed Cooke, Founder at Conexus Law, said: “In the modern commercial world, businesses are often heavily reliant on trading partners and long “just in time” supply chains in order to fulfil their contractual obligations. The impact of Covid-19 could significantly upset those finely balanced arrangements and the relationships between parties may be tested in ways they had not previously contemplated.

“As trading relationships are now often global, a complex interplay of laws from different jurisdictions may also be in play, some of which are potentially in conflict. For example, English law may govern your contract with your customer, but Chinese law may govern the law of your contract with a critical supplier enabling you to perform your customer contract.”

The Conexus Law fact sheet advises that organisations identify whether there are any express provisions written into the contract which might be relevant to the Covid-19 situation. For example, there is a large section on force majeure and whether it is applicable. Other areas include certain insurances and the importance of following all relevant procedures in the policy related to claims notification and submission of claims.

The Covid-19 coronavirus outbreak is already having a significant impact on many individuals and businesses and it is becoming clearer that the impact will likely be more significant and longer lasting than we may have imagined at first. We hope these fact sheets provide helpful guidance during these challenging times,” concludes Ed.

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