Introduction The possibility of a pandemic caused by the avian grippe virus (H5N1) has received considerable media attention everywhere new-made months, and an accompanying sense of inevitability and fear has emerged as the field awaits and prepares for an other pandemic. While the human toll of much(prenominal) an character could be devastating, the effect of an outbreak on businesses and art should not be underestimated or ignored. As pandemics are, prevalently speaking, non-insurable takes, the be exit largely be retained by businesses and and then rich business tenaciousness plans are essential. A check over of the allude of a pandemic on the ability to fare on-going decoctual obligations should form part of all business continuity plans. This update looks at ways businesses evict manage their risks of non-performance of shoveual obligations in the all the samet of a pandemic.
Risks to Businesses Resulting From a Pandemic In the item of a prolonged pandemic, businesses whitethorn face difficulties in execute declarationual obligations as a result of the succeeding(a): Closure of exposit and workplaces Travel restrictions and quarantining Shortage of labour/ risque absenteeism Disruption to come out and distribution channels Communication and decision-making difficulties As a general rule, if the performance of a contract becomes more(prenominal) difficult or even impossible, the party which fails to perform its obligations is in breach of contract and is probable in damages to the other party. If there are no specific provisions in the co ntract dealing with the supervening event wh! ich has caused the difficulties in performing the contract ( such as a squeeze majeure clause), and no agreement can be reached between the parties on how to deal with it, the defaulting party may seek to have the contract discharged on or so other grounds, such as frustration. Frustration Under Hong Kong law, the precept of frustration allows the contract to be automatically discharged when a...If you wish to get a full essay, order it on our website: OrderCustomPaper.com
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