In mid-December 2019, increased cases of pneumonia caused by a previously unknown virus were reported in the Chinese city of Wuhan. It quickly became apparent that this is the so-called coronavirus, which is now keeping the whole world on tenterhooks.
But what does this outbreak mean for the legal situation?? Does the coronavirus constitute an act of God? To answer this question, we asked some experts and in this article we give you 5 tips on how to prepare for possible legal consequences in crisis situations.
The coronavirus not only poses a major medical challenge, but also raises many legal questions. Whether a company, traveler or tour operator – all are affected by the impact. Check out our article on how to stay on the safe side legally and what steps you can take in times of Corona.
Disclaimer: This article is for informational purposes only and is not a substitute for professional legal advice. Always consult an attorney if you have individual questions.
What is force majeure?
In legal terminology, force majeure is a term used to describe a situation beyond a party’s control that prevents them from fulfilling their obligations in a contract or agreement. Such events are typically natural disasters such as earthquakes, floods or wildfires. They are also referred to as “Acts of God” Designated.
In relation to the coronavirus, there is debate as to whether force majeure can be used as a justification because of the pandemic. Some companies have argued that the spread of the virus and associated restrictions – such as closures and quarantines – represent a situation beyond their control and prevent them from meeting their obligations.
To consider force majeure claims, the specific terms of a contract or agreement must be reviewed. A clause that takes into account force majeure situations is usually included in the contract.
5 Tips to deal with force majeure situations
- Review your contracts: Make sure you understand all clauses and terms related to force majeure.
- Inform your partners: If you are affected by a force majeure situation, inform your business partners as soon as possible. Discuss alternative solutions and plan how to minimize damages.
- Document everything: Keep all documentation related to the situation, including invoices, correspondence and regulatory notices.
- Check your insurance: if you have business interruption insurance, check if it provides protection.
- React flexibly: force majeure can have unpredictable consequences. Be prepared to adapt and find alternative solutions to meet your obligations.
Is the coronavirus considered an act of God?
The rapid spread of the coronavirus has led to disruptions and restrictions in business in many ways. Many companies are forced to stop production processes or send their employees to home offices. But what happens when these economic impairments are no longer manageable?
Some companies wonder if they can invoke force majeure to protect themselves against contractual penalties or claims for damages. By law, force majeure is an event that cannot be foreseen or controlled, such as natural disasters or wars. However, whether coronavirus can be classified as an act of God is debatable.
Therefore, it is advisable to take preventive action in advance to minimize potential economic consequences. Here are five tips:
- Find out about contract terms: Check to see if there is a force majeure clause in your contracts and what conditions must be met in order to invoke it.
- Communicate with your contractors: Inform your contractors early on about potential impacts from the coronavirus and work together to find solutions.
- Adjust your risk analysis: Review your risk analysis and adjust it as necessary to reflect new circumstances.
- Create an emergency plan: Establish a contingency plan to act quickly in the event of an emergency. This should include all affected areas, such as production, supply chains and personnel.
- Stay up to date: Keep up to date with the latest developments regarding coronavirus and adjust your actions if necessary.
By taking preventative action and identifying the potential impact of the coronavirus early, companies can protect themselves against economic losses while keeping their contractors informed and working together to find solutions.
5 effective tips to protect yourself from the coronavirus
Coronavirus is a pandemic that affects us all. Despite the high risk of infection, however, there are effective measures you can take to protect yourself and others. Here are five tips everyone should follow:
- Frequent hand washing: Wash your hands regularly and thoroughly with soap and water. Avoid touching your face with your hands, as the virus can enter your body through your mouth, nose and eyes.
- Keep your distance: Keep a distance of at least 1.5 meters from other people to minimize the risk of infection. Avoid large crowds and, at all costs, public transportation during peak hours.
- Mouth-to-nose coverage: wear mouth-to-nose coverage in public and on public transportation to protect yourself and others. Make sure your mask covers your mouth and nose, and change it regularly.
- Cough and sneeze properly: Cough or sneeze into a tissue or the crook of your arm to avoid spreading droplets. Then dispose of the handkerchief directly in the trash.
- Adhere to hygiene measures: Clean frequently touched surfaces such as door handles, handrails and light switches regularly and thoroughly. Also wash items such as eyeglass frames, cell phones and key rings regularly with soap or a special disinfectant.
By following these tips, we can all help slow the spread of the coronavirus and protect ourselves and those around us. Let’s stay mindful and stand strong together during this difficult time!
The impact of the coronavirus on the economy
The coronavirus is having a massive impact on economies worldwide. Most companies are currently struggling with enormous economic challenges such as reduced demand, supply chain disruptions and plant closures. The crisis has hit small businesses and the self-employed particularly hard, who are barely able to withstand a prolonged business interruption.
Restrictions and measures related to the pandemic have also led to an increase in unemployment. Many companies are having to cut staff in order to maintain liquidity and keep their operations going. However, government support, such as short-time benefits, prevented a full wave of layoffs.
- Some of the effects of the coronavirus on the economy are:
- Delaying investments and planning
- Price fluctuations in the financial markets
- Cut back on production and marketing
- Supply chain delays
It is hoped that the economy will regain strength in the future. In the meantime, companies are being asked to adapt to the conditions and adjust their business models. It is also important that governments, in their role as policy makers and facilitators, find a balance between health risks and economic activity. Close collaboration between government and private sector actors is critical in this regard.
Conclusion
The Corona pandemic has shown us that force majeure can be an unpredictable threat that affects all aspects of our lives. The impact on the economy, the healthcare system and society as a whole is enormous. We need to prepare for such situations to minimize the impact.
The 5 tips mentioned in this article are helpful in preparing for potential force majeure events. It is important to realize that we cannot control everything, but we can take measures to protect ourselves and our loved ones.
- Stockpile emergency supplies
- Have knowledge of the risks
- Maintain contacts
- Prepare online purchases
- Keep passports and ID cards handy
We should also be aware that force majeure often occurs unexpectedly and presents us with challenges for which we are not prepared. It is important to remain flexible and act quickly to minimize the impact.
These tips can serve as a foundation for preparing for all types of crises, not just the current pandemic. We should always prepare for the worst, so that we are better equipped to deal with any eventualities.