Covid-19 may not justify force majeure
The declaring party will need to demonstrate a causal link between the pandemic and the reason it is unable to fulfil its obligations
The existence of the Covid-19 pandemic on its own is not enough for a party to declare force majeure, so the claimant will need to demonstrate a causal link from an event to the inability to perform its obligations, according to panellists on the third PE Live webcast on 23 April. While the pandemic is an “extremely serious outbreak and global in reach”, in terms of declaring force majeure “things are not entirely straightforward,” says Richard Nelson, partner, energy practice at international law firm King & Spalding. This stems from force majeure not being an abstract legal concept. “From a legal standpoint, it only exists in a contract. Whatever rights you have or do not have are only
Also in this section
12 December 2025
The federal government is working with Alberta to improve the country’s access to Asian markets and reduce dependence on the US, but there are challenges to their plans
12 December 2025
The latest edition of our annual Outlook publication, titled 'The shape of energy to come: Creating unique pathways and managing shifting alliances', is available now
11 December 2025
The removal of the ban on oil and gas exploration and an overhaul of the system sends all the right messages for energy security, affordability and sustainability
10 December 2025
The economic and environmental cost of the seven-year exploration ban will be felt long after its removal
