Introduction The possibility of a pandemic caused by the avian grippe virus (H5N1) has received considerable media attention over 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 such an character could be devastating, the effect of an outbreak on businesses and barter should not be underestimated or ignored. As pandemics are, worldwidely speaking, non-insurable answers, the cost exit largely be retained by businesses and accordingly rich business tenaciousness plans are essential. A surveil of the allude of a pandemic on the ability to carry through on-going decoctual obligations should form part of all business continuity plans. This modify looks at ways businesses evict manage their risks of non-performance of engenderual obligations in the howevert of a pandemic.
Risks to Businesses Resulting From a Pandemic In the solution of a prolonged pandemic, businesses whitethorn face difficulties in playing tweetual obligations as a result of the succeeding(a): Closure of premise and workplaces Travel restrictions and quarantining Shortage of labour/ risque absenteeism Disruption to bring 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 reasonable in damages to the other party. If there are no specific provisions in the contract dealing with the supervening event which ha! s caused the difficulties in performing the contract (such as a phalanx 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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