Now what if there is no force majeure clause in your contract or the force majeure clause in the contract does not cover the ongoing COVID-19? In this case, the doctrine of frustration may be relied on by you or your company. It all depends on the proper interpretation of the clause and the applicable law governing the contract. 1 In other words, your contract must include a force majeure clause in order for you to rely on force majeure, and even then, COVID-19 may or may not constitute a force majeure event in your contract.
What is referred to as force majeure in our law depends on the contractual terms that the parties may have agreed upon. However, here’s the catch - force majeure is a creation of contract. If you or your company is in this situation, you may have been told to invoke the force majeure clause.
Certainly, many are left wondering whether there is any sort of contractual protection that they may seek refuge from at this time of uncertainty. Some may be struggling to meet their obligations under the contracts. Some may have contractual obligations being obstructed by the outbreak.
#IMPOSSIBLE PROJECT MAGENTA FULL#
In roughly 4 months, COVID-19 has affected almost all countries and territories in the world including Malaysia which is now under a Restriction of Movement Order (“ RMO”) until 14 April 2020, following the recent spike in COVID-19 cases in the nation.įrom an economic perspective, the outbreak has dampened global economic activities and rattled the position of companies of all scales - big, medium or small, though the full impact is yet to be determined.
The coronavirus disease, COVID-19, has taken the world by storm when the outbreak was first discovered in December 2019.
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