The contract may be terminated by any party without liability, damages, royalties or penalties, and any unused deposits or amounts are refunded in writing to the other party for one or more of the above reasons. For insurance, the name “pandemic” by the WHO is particularly important. Many event cancellation guidelines use the WHO statement as a trigger for the exclusion of communicable diseases. For example, some directives contain language similar to the following: postponements and cancellations of events due to the COVID-19 pandemic raise a large number of commercial concerns, including whether the service can be excused due to a provision on force majeure or a doctrine of common law, such as impossibility or frustration of the object; the extent of each party`s insurance coverage; and whether the organiser must grant refunds to ticket buyers. Below is a summary of the main principles and possible considerations in assessing these issues. In total, two different circumstances may lead to the termination of an event contract before the date of the event. And there should be two separate and different contractual clauses to cover each of these circumstances. If a service provider attempts to cover all circumstances related to COVID-19 in a single provision of the contract, the service provider may be insufficiently protected. Here are the two types of clauses and circumstances: each force majeure clause contains a list of events that allow one of the parties to invoke the protection of the clause.
The list can be general – “force majeure or government authorities, natural disasters or other emergencies” – or very detailed to cover any potential disaster. The provisions generally cover natural disasters such as hurricanes, floods, earthquakes and weather disturbances (sometimes referred to as “force majeure”) and regional risks such as an avalanche or tsunami. Other events covered may be war, terrorism or terrorist threats, state regulation, disturbances, strikes or labor disturbances, fire and limitation of means of transport that prevent or delay the participation of at least 25% of the participants in the meeting. Public health threats recognized by external bodies such as the Centers for Disease Control and Prevention or the World Health Organization or general formulations relating to medical epidemics are sometimes explicitly included. Although the state`s rules will be gradually repealed over the coming months, many public manifestations of COVID-19 may be negatively affected, with participants still reluctant to participate in large meetings. While such situations are unlikely to be covered by the force majeure provisions, the parties can verify whether the remaining effects of COVID-19 are sufficient to thwart the purpose of the parties` agreement. Demanding parties often lead insurance to protection against the risk of cancellation and/or similar risks, such as.B. service interruption insurance.
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