This post is specifically for business owners and associates as disputes affecting declaration of Force Majeure from the impact of COVID-19 seems to be unavoidable.
An 'Act of God' is simply an unpredicted natural event while the Force Majeure is simply the clause included in contract to remove liability for natural and unavoidable catastrophe that interrupts the expected course of events and restricts parties from fulfilling an obligation.
It is no doubt that the world was caught unaware so also business moguls , I will like to point out instances where a party to contract will be excused for non-performance, where the contract does not contain clause it is still not certain that a party will be able to rely on it to protect against claims for non-performance as a result of difficulties caused by Covid-19 outbreak because of their serious impact on the parties right and obligation.
A party relying on Force Majeure will have to show that the event has occured which is beyond its control, it prevented or hindered him or delay its performance of contract and it has taken all reasonable steps to avoid or mitigate event or its consequencies .
Also, deciding on whether the virus outbreak is a Force Majeure will depend on the contractual clause ,if disease or epidemic is not expressly included it may be that another such term as an act of God once described as an irresistable act of nature will suffice , but will require a careful consideration. Hinderance or delay may be addressed but how the virus has hindered or delayed the performance must be established .
Conclusively, there is also an obligation to mitigate the consequence of the Force Majeure which is to resume as soon as the the effect of the virus has passed.
Thank you
Cremelawyer
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