Covid-19: Who bears the business loss?

The legal ramifications of coronavirus

clock • 3 min read

The Covid-19 pandemic is a global crisis. Beyond the terrible loss of life, most large economies are in some form of lockdown, creating unprecedented disruption to commercial activity.

Even if some sectors are bailed out, there will be numerous insolvencies and bankruptcies. Much of the global trade system has also been thrown into chaos as export pipelines fracture and start to run dry. Few businesses can function normally; sometimes, they have ground to a halt. The sustained impact of Covid-19 will be deep and drawn out over the coming decade as faltering global supply chains create a long-term problem for business. The ideal configuration of a supply chain involves back-to-back contracts and pay-when-paid clauses. If problems arise, losses are allocated propor...

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