Covid-19 and Purchase Agreements

As the world continues to grapple with the ongoing COVID-19 pandemic, many individuals and businesses are finding themselves re-evaluating their purchase agreements. From delays in production to disruptions in supply chains, the pandemic has led to unprecedented challenges in the world of commerce. In this article, we explore the impact of COVID-19 on purchase agreements and how parties can mitigate risks and protect their interests.

Force Majeure Clauses

One key tool for managing the impact of COVID-19 on purchase agreements is the inclusion of force majeure clauses. These clauses are designed to protect parties from unforeseeable events that may prevent them from fulfilling their obligations under a contract. The COVID-19 pandemic may meet the criteria of a force majeure event, as it is an unforeseeable and uncontrollable event that has led to widespread disruption in global supply chains, manufacturing, and logistics.

A force majeure clause typically defines a list of events that would trigger its activation, such as natural disasters, war, strikes, or government actions. Parties who include such a clause in their purchase agreements can avoid being held liable for breaches caused by events outside of their control. However, it`s important to note that not all force majeure clauses are created equal, and their interpretation may vary based on the specific language used.

Price Adjustments

Another issue that parties may face in purchase agreements during the pandemic is the fluctuation of prices. As supply chains are disrupted, production slows, and demand shifts, prices may rise or fall unpredictably. Parties may consider including price adjustment protocols in their purchase agreements to account for such changes. These may include clauses that allow for renegotiation of prices based on changes in supply costs, currency fluctuations, or other factors.

Delivery and Acceptance

COVID-19 has also impacted delivery and acceptance timelines. Manufacturing and transport delays have led to significant disruptions in the delivery of goods, causing frustration and financial losses for parties involved. In response, parties may consider including clear provisions in their purchase agreements that outline deadlines for delivery and acceptance of goods. They may also include provisions that provide for extensions of delivery timelines if delays are caused by force majeure events such as the COVID-19 pandemic.


The COVID-19 pandemic has created unprecedented challenges for the world of commerce, affecting supply chains, manufacturing, transportation, and logistics. Parties involved in purchase agreements must be proactive in addressing the risks posed by the pandemic and protecting their interests. This may involve including force majeure clauses, price adjustments, and clear provisions for delivery and acceptance in their contracts. By taking these steps, parties can mitigate risks and minimize potential damages caused by the pandemic`s impact on commerce.

Bartha Dániel