Coronavirus: managing the risk of breach of contract

The fast spread of Covid-19 (Coronavirus) throughout the world and the impact of the administrative measures to contain its spread represent a growing challenge for companies and individuals alike. The main focus is clearly to ensure the safety of workers and employees. However, another big challenges that businesses will face is the impact of the Coronavirus on their ability to comply with their contractual obligations and to businesses that are the other parties to their contracts.

"Companies must evaluate the extent to which the Coronavirus may prevent compliance with their contractual obligations and the mechanisms available to them to react if the other parties default. This analysis must follow a dual approach: firstly, under the terms of each contract and, secondly, under the general rules applicable on a supplementary basis."

Click here for the full article by Duarte Schmidt Lino, André Figueiredo and João Tiago Morais Antunes.