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Covid-19: impact on contractual obligations in the travel industry supply chain

In last month’s article we looked at what obligations travel providers have to their customers in the event their holidays are affected by the Covid-19 outbreak. In this article, we will take a look at how the Coronavirus can impact B2B contracts in the travel sector; specifically, the contractual and legal issues arising in English law as a result of businesses in affected countries having to suspend, or even cancel, their operations.

Performing your contractual obligations: the English law position

The travel industry is a service-driven sector, and is reliant on a web of supply and demand relationships which will all be underpinned by contracts. The basic position under English law is that contractual obligations are absolute; this means a party must comply with its obligations regardless of the circumstances, and failure to do so may mean that party is liable to the other for breach of contract. However, in extreme circumstances, there are some exceptions to this rule. Read more…