An in-depth look at how contract breaches are interpreted and resolved in the evolving legal landscape shaped by the pandemic.

Inroduction

The pandemic significantly disrupted global business, leading to a rise in contract breaches. As companies continue adapting, legal frameworks around breach, force majeure, and risk allocation are under new scrutiny.

Types of Contract Breaches

• Minor Breach – Small failure without major consequences

• Material Breach – A serious violation affecting the contract’s core

• Anticipatory Breach – When a party signals non-performance before it’s due

Force Majeure in Focus

Force majeure clauses now commonly include pandemics. Courts examine:

• If the pandemic was clearly listed

• Whether performance became truly impossible

• If mitigation was attempted

Example: A manufacturer avoided penalties for COVID-related closures due to a specific clause. Another party failed due to vague wording.

Frustration & Impracticability

• Frustration of Contract: Used when an unforeseen event destroys the contract’s purpose (e.g., canceled event due to lockdown).

• Commercial Impracticability: Applies when performance becomes unreasonably hard or expensive, like supply chain delays or material cost spikes.

Recent Cases

• Tech Distributor: Won a case using a clear force majeure clause amid chip shortages.

• Event Planner: Lost client refund lawsuits due to missing pandemic clauses.

Best Practices Moving Forward

1. Use detailed force majeure language (include pandemics, lockdowns)

2. Add flexibility and renegotiation terms

3. Clearly assign financial responsibilities

4. Include business continuity clauses

5. Regularly review contracts with legal advisors

Conclusion

In the post-pandemic economy, contracts must be clearer, smarter,