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Issued: 31 March 2020
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In the course of the COVID-19 pandemic, suppliers and other parties to commercial arrangements with government agencies may exercise rights under force majeure clauses. A force majeure clause is a contractual method by which parties seek to manage the impact of events beyond their reasonable control.
In managing commercial transactions during the COVID-19 pandemic, agencies should:
A force majeure clause is a contractual risk allocation tool. It is a mechanism by which parties seek to manage the impact of events beyond their reasonable control. In general:
As to whether the COVID-19 pandemic would constitute a force majeure event, the terms of the "force majeure event" definition will be key. However, the following general points can be made:
If the definition of "force majeure event" encompasses the COVID-19 pandemic, consideration must be given as to:
Felicity Shaw, Assistant Crown Solicitor
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Michael Granziera, Director
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Amalia Stanizzo, Special Counsel
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Karen Ferris, Principal Solicitor
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16 Nov 2022
We acknowledge Aboriginal people as the First Nations Peoples of NSW and pay our respects to Elders past, present, and future.
Informed by lessons of the past, Department of Communities and Justice is improving how we work with Aboriginal people and communities. We listen and learn from the knowledge, strength and resilience of Stolen Generations Survivors, Aboriginal Elders and Aboriginal communities.
You can access our apology to the Stolen Generations.