Covid-19: Is it a force majeure event for business?

THE World Health Organization has declared the Covid-19 outbreak a global health emergency while in Singapore, the government has raised the Disease Outbreak Response System Condition level to orange.

As the threat mounts, the economic toll is rising; national borders are restricted, entire industries and businesses affected, with many struggling to find their feet. A key question being asked is what will happen when businesses aren't able to perform agreed contracts because of obstructions to supply chain, travel and import restrictions, human resource impediments and falling demand.

Will these contracts be terminated, the obligations suspended, or will the affected parties have to endure the losses?