The convergence of COVID-19 and force majeure as a legal mechanism.
Force majeure is a legal mechanism which may be relied upon by parties who are under a legal obligation to carry out specific performance, but are unable to carry out such specific performance pursuant to an exceptional event or circumstance which is beyond the control of those parties bearing a legal obligation.
COVID-19 has the potential of preventing parties to commercial agreements from performing their obligations as provisioned in commercial agreements which could trigger default events and lead to substantial losses being suffered as a result of the non-performance.
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