Impact of COVID-19 on French Law Governed Contracts

How can companies respond to the impact on the COVID-19 crisis on their current contracts, either because a reduced workforce, interrupted supply chain, or governmental orders to shut down businesses?

On 30 January 2020, the World Health Organization declared the COVID-19 pandemic a public health emergency of international concern.1 Acknowledging the spread of the virus to France, in turn, the French government advised employers to encourage work-from-home schemes or to resort to partial activity if needed. On 24 March, an emergency law that enables the declaration of a state of health emergency as well as further restrictions to the freedoms of movement, enterprise, and assembly was enacted.2 These measures (implemented by ordinance and/or decrees) will likely cause significant disruptions to businesses’ operations and commercial relationships. Consequently, parties to French law contracts may wish to review the available contractual rights and obligations in order to manage and mitigate the effects of the COVID-19 outbreak.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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