Business in Sweden and the coronavirus disease (COVID-19)
You have probably heard about the term force majeure by now, and you probably know that the legal implications of it may be relevant in extraordinary situations. But, you may find yourself wondering what force majeure entails for your company.
Does COVID-19 constitute a force majeure event? What are you required to do in a force majeure situation? Are you required to do anything? What are your rights and obligations?
What happens if your company cannot perform in accordance with your agreements? Will you risk damages? Can you modify existing agreements to mitigate the effects of COVID-19 with regards to your contractual obligations?
Your commercial agreement, whether it is about the supply, distribution, production, or purchase of goods, may have a clause regarding force majeure. You may have certain rights and/or obligations stemming from this ongoing situation.
Many of the questions above can be answered in a general matter. Hence, COVID-19 may generally constitute a force majeure event, provided that the specific force majeure clause has taken into account such a scenario (e.g. epidemic). However, the answer will always depend on your particular circumstances and the agreement at hand. Our general advice to our clients is to look into your specific circumstances and agreements to analyze how COVID-19 affects or may affect your business relationships.
Contact us and we will look into your specific situation and provide guidance.
Front Advokater has appointed a focus group with members from our various business areas to best assist clients in the various issues and challenges arising from the outbreak of COVID-19. If you have any questions, you are always welcome to contact us.