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24 J. Legal Ethical & Regul. Isses 1 (2021)
Effects of COVID-19 Pandemic on Contractual Relations

handle is hein.journals/jnlolletl24 and id is 640 raw text is: Journal of Legal, Ethical and Regulatory Issues EFFECTS OF COVID-19 PANDEMIC ON CONTRACTUAL RELATIONS Nadia Yas, College of Law, Al Falah University ABSTRACT The COVID-19 is the contemporary element of worriment that has gripped the entire world since its emergence at the end of 2019 and it being declared a pandemic on 11 March 2020. As a means of protection, several countries around the world declared national lockdowns on every business and social activities; no one was allowed in or out of their country. Many businesses took a hit from the lockdown; contractual business or activities were the worst hit by this pandemic. Countries took several measures to help their people who had already be devoured by the economic and financial hardship. To many in the line of work associated with contract saw it prudent to enforce force majeure considering it as the only way of not fulfilling obligations addressed in the contract document on grounds of events that are beyond control (Private civil law). In many instances, the application of such a provision has always faced several obstacles since the interpretation of this clause by the courts is usually narrow. Many applications of force majeure get thrown out due to lack of compelling reason but today, that would be impossible. The research therefore will focus on the outbreak of COVID-19 as unforeseeable events that effected contractual relation thus the need for force majeure. Keywords: Force Majeure, Contractual Relation Obligation, Coronavirus; COVID-19. INTRODUCTION On a daily basis, new active Coronavirus (COVID-19) cases are being reported with the pandemic continuing to wreak havoc and uproot the lives of people (Song et al., 2021). Businesses the world over have not been spared either as they continue to be ravaged by the unforeseen impacts of the Coronavirus pandemic (Schwartz, 2020). Declines in demand as well as disruption of supply chains have occurred as a result of the pandemic and its ensuing response. Different governments across the globe have responded to the pandemic by imposing a raft of measures aimed at arresting the spread of the disease (Kiraz and Ustun, 2020). These measures have included the closure of non-essential businesses, quarantines, air travel restrictions, border closings and dusk to dawn curfews of Private civil law. The world economy has been substantially disrupted by government-imposed restrictions and the pandemic itself. The transport, trade, hospitality and tourism industries have been particularly affected by the economic slump across different sectors of the world economy (Schwartz, 2020). Under existing contracts, organizations are struggling to meet their obligations owing to the global effects of the pandemic. Swift and immediate action has had to be taken by companies who harbor concerns on how to meet their contractual obligations. Under existing contracts, organizations are struggling to meet their obligations owing to the global effects of the pandemic. Swift and immediate action has had to be taken by companies who harbor concerns on 1544-0044-24-3-617 Volume 24, Issue 3, 2021 1

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