Contracts & Force Majeure

Statutory Moratorium Against Breach of Scheduled Contracts Starts 20 April 2020

On 20 April 2020, the provisions in the COVID-19 (Temporary Measures) Act 2020 Act dealing with the following temporary measures came into force:

• Temporary relief for inability to perform a scheduled contract specified in the Act that is to a material extent caused by a COVID-19 event; and
• Temporary relief for financially distressed individuals and businesses by increasing the debt thresholds for bankruptcy and insolvency. 

The Regulations setting out the details for a party to seek the temporary reliefs under the Act were also issued and came into force on 20 April 2020. 

This Update provides a summary of the requirements and process for seeking these temporary reliefs under the Act and includes an overview guide of the procedure diagrammed for your ease of reference.