Answer to Question #190153 in Law for Basani

Answer to Question #190153 in Law for Basani

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Question #190153

Discuss the common law position of possibility of performance. Advise Derrick Obama whether the common law only, can assist him in suspending payments during the “LOCKDOWN’

Expert’s answer

Covid 19 was declared a global pandemic that led to South African government to declare a national state of disaster and to adopt stringent precautionary measure to contain the outbreak. A nationwide lockdown has been implemented (“SA Lockdown”). In terms of regulations published under the Disaster Management Act, 2002 (“DMA Regulations”), only certain businesses recognized as providing “essential goods and services” may be open and operational during the SA Lockdown. Therefore, under certain circumstances Derrick can suspend payments based on the provisions of the DMA regulations and SA lock down. However, based on the contract terms, the force majeure can prohibit Derrick’s ability to suspend the payments despite the provisions of SA lockdown and DMA regulations 

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