The entire world was shocked by the sudden onslaught of the Covid-19 Virus.
The governments in all parts of the globe have implemented immediate measures
to protect its citizens from this invisible antagonist, Covid-19.
The implementation of the ECQ has resulted to a paralysis of business operations.
A great majority of the businesses, if not all, were severely affected. The ECQ resulted
in limited manpower, disruption of supply chains, potential chain reactions of collectability issues, inability to meet the demands of the customers, missed deadlines, non-delivery
of service and goods, both finished goods and raw materials, and restrictions
on commercial operations, and for some businesses, like the small and medium
enterprises, there has been even a stoppage of operations.
The concern of businesses now is to lessen the impact and if possible avoid liability
for breach of contract. This concern of the businesses is also a concern for individuals
who have obligations and contracts to fulfill.
CONTRACTUAL OBLIGATIONS AND FORCE MAJEURE
The questions, many ask these days are the following:
1. Is the Covid-19 pandemic considered a force majeure?
2. Can force majeure be used as a legal remedy in order to avoid liability in the failure to perform contractual obligations?