This information relates only to implications for English law contracts.
Some agreements, particularly those relating to financial arrangements, contain clauses dealing with material adverse changes in circumstances from when the agreement was originally made.
These are bespoke arrangements, which can lead to a wide variety of consequences from increased obligations to provide information to being an event of default.
These provisions can have a radical impact on the rights and obligations of the parties in certain circumstances.
The Covid-19 outbreak might constitute a material adverse change, depending on the wording of the contractual provision.
Webinar recording: Force majeure – litigation in the wake of Covid-19
In this webinar, Sean Upson, Mo Bhaskaran and Lucy Ward used their experience relating to force majeure clauses following the California energy crisis, the Japan earthquake and tsunami in 2011 and in the wake of 9/11 terrorist attacks, to cover: What is force majeure and frustration?; Considerations when applying force majeure to the current UK situation; What events would a force majeure clause cover?; The requirements to consider when a force majeure clause is used; and The burden of proof when invoking force majeure.
Meet our specialist Covid-19 team
We have assembled a specialist team who have the experience and expertise to help with all the legal issues emerging out of the Covid-19 crisis, you can meet them here…
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