The current coronavirus pandemic has inflicted major damage on global supply chains and commodities markets. As of March 11th, 75% of companies reported experiencing supply chain disruptions in connection with the pandemic, with more than 60% of businesses subjected to delays in their orders from China.
“The Effects of Force Majeure in Contracts” is a follow-up to our first coronavirus (COVID-19) -related force majeure study. This time, we used Kira to review all of the commercial contracts filed on EDGAR between February 2018 and February 2020 that involved at least one Chinese entity and contained force majeure provisions to identify, categorize and analyze those consequences.
This study includes the prevalence of force majeure clauses within these contracts as well as:
- Suspension of performance;
- The need for consultation/discussion, and;
- Termination of contracts altogether.
With the severity and prevalence of the coronavirus escalating quickly, and more businesses and industries affected each day, the volume of contracts that may warrant review for force majeure provisions is growing as well. If you’d like to learn more about the potential impacts COVID-19 could have on your or your clients’ organization(s), download our study today!