Covid-19 and Contracts
Whether the Pandemic: Covid-19, Could Trigger a Force Majeure Clause On March 11, 2020 the World Health Organization (WHO) officially declared COVID-19 a global Pandemic in a bid to curtail the sporadic spread of the Virus. Several Countries of the world, are contained to enforce a general lockdown to the effect that it's citizens must now remain at home or in isolation. This has no doubt had a ripple effect on commercial activities as a number of businesses were forced to shut down operations. In the light of this, the performance of contractual obligations has no doubt been truncated. Supply contracts, construction contracts, simple contracts, even the servicing of bond programme where performance may may be hindered or has been rendered almost impossible to execute as a result of this outbreak. It is important to include a "Force Majeure" clause in commercial contracts which basically operates to suspend excuse or even terminate performance of it's obligations