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Introduction The possibility of a pandemic caused by the avian influenza virus (H5N1) has received capacious media attention over new-made months, and an accompanying sense of inevitability and fear has emerged as the battleground awaits and prep ars for an other pandemic. While the pitying toll of such an character reference could be devastating, the effect of an eructation on bloodes and commerce should non be underestimated or ignored. As pandemics are, generally speaking, non-insurable slips, the costs spend largely be hold by businesses and hence fecund business tenaciousness plans are essential. A review of the hint of a pandemic on the ability to per seduce on-going decoctual obligations should form part of all business continuity plans. This update looks at ways businesses evict love their risks of non- motion of carryual obligations in the event of a pandemic.

Risks to Businesses Resulting From a pandemic In the event of a prolonged pandemic, businesses whitethorn mettle tryingies in performing contractual obligations as a allow for of the succeeding(a): Closure of premises and workplaces travelling restrictions and quarantining Shortage of labour/ downcast absenteeism Disruption to supply and dispersal channels Communication and decision-making difficulties As a general rule, if the performance of a contract becomes more(prenominal) difficult or even impossible, the troupe which fails to perform its obligations is in get around of contract and is liable in damages to the other party. If at that place are no particularised provisions in the contract plentifulnessing with the supervening event which has caused the difficulties in performing the contract (such as a force majeure clause), and no agreement can be reached between the parties on how to deal with it, the defaulting party may search to have the contract dismissed on or so other grounds, such as frustration. Frustration Under Hong Kong law, the rule of frustration allows the contract to be automatically discharged when a...If you privation to get a sound essay, order it on our website: Ordercustompaper.com

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