The devastating effects of global pandemic Covid-19 have left many businesses unable to perform contractual obligations and with no option but to invoke force majeure clauses. Unfortunately, Covid-19 is also being used by certain businesses to escape contractual obligations without the business’ inability to perform being directly related to events surrounding Covid-19. This trend, if unchecked, could have a detrimental effect on the South African economy. In his address to the nation on 9 April 2020, President Cyril Ramaphosa urged businesses not to simply resort to force majeure or to stop paying their suppliers and rental commitments, as this would further negatively impact supply chains and the wider South African economy.
- April, 2020