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erdemir engineering management and co...
2020-02-09 09:33:58

Coronavirus (2019-nCoV)

It is clear that Novel Coronavirus (2019-nCoV) will be affecting the world economy negatively. What is your opinion about these impacts of nCoV on the business performance also taking into account force majeure clauses in a standard type of contract? Can it be considered as a force majeure?
 •  Fire and Emergency NZ  •   2020-02-13 07:50:55
Hi Semih - great question, especially as I think that we're yet to see the full impact on many supply chains of this incident.

There will be many suppliers and their customers having discussions about the potential application of this clause. One of the most simple definitions from the internet is set out below :

Unforeseeable circumstances that prevent someone from fulfilling a contract.

It's instances like this where I go back to what was a watershed moment for myself and many others in the audience when Bruce Everett and Tim Cummins challenged the audience in New Zealand last year, asking why we spend so much time trying to get the best supplier on board to give us the best possible outcome - and then run straight to solicitors when something goes wrong. Perhaps now is that opportunity, if you haven't already adopted the IACCM contracting principles into documents, and think about how you might engage directly with suppliers and customers and hope that they remember back to when everyone was happy that both felt excited to be part of a new relationship - and how to maintain that through what might be a challenging time around the globe.

If you've got a strong relationship with some of your affected suppliers, no doubt you've had a chat already about this.
If not, then perhaps you could kick that off by extending out to them the olive branch to start these discussions.
 •  World Commerce & Contracting  •   2020-02-20 03:54:21
Hi Semih,

Thanks for your post. I forwarded it to Tim Cummins, our Founder and President and he wrote this blog for you and others who are interested in the impact of the virus



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