News & Events

MAR 2020 NEWS Aluko & Oyebode

This Advisory Update has been prepared to provide practical measures for managing the impact of COVID-19 or Corona Virus on the operations of companies/businesses operating in Nigeria.

Commercial Contracts

We understand that there may be concerns on how to deal with commercial contracts and any interruptions in performance of obligations as a result of the impact of the Covid-19 virus. Supply contracts, construction contracts and other similar contracts where performance may be hindered or rendered impossible as a result of the impact of the virus come within this category.

Commercial contracts usually include “force majeure” clauses which operate to suspend or excuse performance in the event of an occurrence beyond the reasonable control of the parties. It is important for companies and/or businesses to verify if their contracts include “force majeure” clauses and the extent to which, if at all, the force majeure can be triggered in the context of this current pandemic. Where performance is impossible and the contracts do contain applicable force majeure clauses, then the relevant notices and protocols should be triggered.

In the event your contracts do not include “force majeure” clauses, or the clauses are not appropriate to cover the current pandemic, you will need to explore what alternative legal remedies or options that may be available to you. In addition, questions such as whether any loss or business interruptions that you may suffer or subjected to are covered by insurance policies and the extent of such coverage are vital issues facing most businesses now.