Tui is invoking force majeure clauses in response to Coronavirus, others will follow

As the FT report that Tui is seeking to invoke force majeure clauses in contracts with its partners, many other businesses will be looking at their own contracts to see what steps they can take to protect their position in response to the coronavirus pandemic. 

While force majeure clauses can provide a party unable to perform its contractual obligations due an extreme event to be relieved from performing its obligations, relying on force majeure clauses is not always straight forward. The specific wording of the clause, and its interaction with other contractual terms, will be important.   Businesses need to carefully review the applicable contractual terms and take appropriate advice.  

Further, it is not an easy decision to take given the consequences for business partners and therefore the impact it may have on future business relationships.  

I have written more on the subject and key considerations for businesses here: 

https://www.howardkennedy.com/Latest/Article/Unforeseeable-and-unavoidable-implications-of-coronavirus-for-business-contracts