Featured in Enterprise: The legal implications of covid-19: What does force majeure mean for business?
The COVID-19 crisis posed unprecedented challenges and difficult decisions for both businesses and the government. While businesses have done their best to comply with their contractual obligations, the reality of the situation is that many may struggle to meet their contractual obligations in the coming weeks and months.
Fortunately, most large contracts in Egypt contain “force majeure” clauses, which may provide businesses with legal relief in these difficult times.
At Youssef & Partners (Youssef + Partners), Karim A Youssef, managing partner of the firm, explains that these clauses typically provide for contingencies, such as economic shocks or minor disturbances.
The exact terms of the “force majeure” clause are, however, up to the contracting parties to agree upon. This is why it is essential for businesses to understand their contractual obligations and know what type of protection force majeure may provide.
FAQS
What is force majeure in the context of businesses during the COVID-19 crisis?
Force majeure refers to unforeseeable circumstances that prevent a party from fulfilling their contractual obligations.
How does force majeure clause help businesses during the COVID-19 crisis?
A force majeure clause can excuse performance of contractual obligations when events beyond the parties’ control, like a pandemic, occur.
What are common examples of force majeure events in the COVID-19 crisis?
Examples include government-imposed lockdowns, travel restrictions, supply chain disruptions, and business closures due to the pandemic.
Can businesses invoke force majeure due to the COVID-19 crisis?
Businesses may be able to invoke force majeure if the pandemic directly impacts their ability to perform under a contract, but it depends on the specific contract wordings.
Read the full article on Enterprise ((https://enterprise.press/stories/2020/03/26/the-legal-implications-of-covid-19-what-does-force-majeure-mean-for-business-13859/))
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