Tag Archives: Force Majeure

ILN Today Post

NCOVID-19 & FORCE MAJEURE

The pandemic situation related to the NCovid-19 virus spread, as it has been declared by the World Health Organization, and the effects of the measures introduced, both at a national and international level, are raising serious challenges to companies and families, which could jeopardize the stability of business and, consequently, of the worldwide economy.

From a legal standpoint, it is necessary to assess if the above-mentioned outbreak constitutes, or not, a force majeure situation, especially regarding its effects on the fulfilment of contracts. Read more…

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ILN Today Post

Can Every Breach or Non-Performance be Justified or Excused on Invocation of COVID-19 as a Force Majeure: Delhi High Court Verdict

COVID-19 has caused tremendous economic loss, delays in project completion, missing of targets and milestones and potential breaches and disputes among contracting parties. Recently, in the matter of Halliburton Offshore Services Inc. vs Vedanta Limited & Anr. [O.M.P (I) (COMM.) No. 88/2020 & I.As. 3696-3697/2020], a petition seeking inter alia restrain on invocation of the bank guarantees issued in favour of the Respondent, the Hon’ble High Court of Delhi considered the issue of invocation of COVID-19 as a Force Majeure condition and held that “Every breach or non-performance cannot be justified or excused merely on the invocation of COVID-19 as a Force Majeure condition”. The Court further observed that it would have to take into consideration various factors to assess whether a party is genuinely prevented or justified in its non-performance due to the epidemic/pandemic.

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ILN Today Post

Force Majeure Event – Injunction Against Invocation of a Bank Guarantee During Lockdown

Judgment: M/s Halliburton Offshore Services Inc. Vs. Vedanta Limited & Anr. [O.M.P. (I) (COMM) 88/2020 & I.A. 3697/2020]

Forum: Hon’ble High Court of Delhi (“Court”)

Judgment delivered on: April 20, 2020

Act/Law: Arbitration and Conciliation Act, 1996 (“Act”).

Ratio: Special equities in order to prevent irretrievable harm or injustice is a ground for injuncting invocation/encashment of bank guarantee.

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COVID-19 and Force Majeure: Navigating Exceptional Times as a Business

By Sharon G. Druker, Geneviève Goulet, Sara Laraichi, Elyssa Leiberman and Sydney Warshaw, from our Business Law Practice Group

April 15, 2020 — Everything has changed since the World Health Organization declared COVID-19 a pandemic on March 11, 2020, and it has since become increasingly clear that its impact will be felt across every level of society and industry. Businesses and individuals, reeling from the economic impacts of COVID-19, are wondering how it will impact their various contracts, legal obligations and commitments. In particular many are wondering if force majeure, an often under-considered element of most contracts, is relevant at this exceptional time.

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ILN Today Post

Bombay High Court: No benefit to Petitioners seeking Force Majeure owing to Covid-19 outbreak

Judgment: Standard Retail Pvt. Ltd. V/s M/s. G. S. Global Corp & Ors. with Integral Industries Pvt. Ltd. V/s M/s. G. S. Global Corp. & Ors.; Vinayaga Marine Petro Ltd. & Anr. V/s M/s. G. S. Global Corp. & Ors.; Hariyana International Pvt. Ltd. V/s M/s. Hyundai Corporation & Ors. and Prabhat Steel Traders Pvt. Ltd. V/s M/s. Hyundai Corporation & Ors. [Commercial Arbitration Petition Nos. 404, 405, 406, 407 and 408 of 2020],

Forum: Hon’ble High Court of Judicature at Bombay (“Court”)

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The supervening impossibility of the performance and the force majeure at the time of Covid-19 in the Italian legal system

The supervening impossibility of the performance and the force majeure at the time of Covid-19 in the Italian legal system
From EXP Legal Contractual Law Team. The crisis resulting from the Covid-19 epidemic is having…

The question arises with particular regard to leasing relationships, whether commercial or for residential use, but is to be considered interpretatively and abstractly extended to any type of contract.

Of course, the problem arises in cases where the parties have not explicitly intended to regulate in the contract the occurrence of an interrupting or suspensive event regarding the obligations undertaken, and therefore in cases where no instances of supervening impossibility and/or force majeure have been typified, which may render the breach or delay in the fulfillment of one or both parties legitimate.

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ILN Today Post

Force Majeure During the COVID-19 Crisis

Companies have asked “Does the current corona crisis constitute a (global) force majeure – act of god situation from a legal point of view?” and want the answer in a short, summary format – and the ILN has answered – 23 member jurisdictions have weighed in with concise responses to help guide your business in the current crisis.

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Covid-19 – A force majeure event under the Irish legal system?

As the global effect of Covid-19 increases day by day, parties’ abilities to perform contractual obligations have been impacted and will inevitably be further interfered with as this pandemic continues.

In Brief: It remains to be seen whether Covid-19 will enable parties to affected commercial contracts to invoke force majeure relief and therefore excuse non-performance or delay of their contractual obligations, or will it remain possible to issue proceedings against parties for breach of contract, despite the cause of non-performance being the current global pandemic?

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A World Turned Upside Down: Contract Performance During the COVID-19 Pandemic

Imagine these scenarios:

  • Your company cannot perform a contract because of the COVID-19 pandemic.
  • A vendor informs you that she cannot provide your company with necessary goods because of supply chain issues caused by a governmental emergency declaration.
  • A subcontractor cannot perform because its employees are self-quarantining.

These are not hypotheticals. Scenarios like these are playing out around the country. The real-world impact of the COVID-19 pandemic is colliding with contractual requirements, and there is new attention to the legal doctrines of “impossibility,” “frustration of purpose,” “impracticability, and “force majeure.”

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ILN Today Post

FORCE MAJEURE AND CORONAVIRUS: FREQUENTLY ASKED QUESTIONS

Part 1: Force Majeure and Suspension/Termination of Contracts

Coronavirus (COVID-19) is turning out to be a twin fold pandemic – that started with affecting public health and soon spread throughout the economy. Sudden global shutdown and travel restrictions have brought the economy to a screeching halt, before most of us could even comprehend the real impact. Many businesses are still at a loss and are only doing a guesswork regarding the magnitude of potential losses and recalibration needed for the businesses to survive this time, and remain viable.

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