Legal Impact of corona-virus outbreak in business and trade in Bangladesh:

  • Possible breach and compensation claim against seller for delay in supply
  • Possible breach and compensation claim by buyer
  • Breach of carriage contract and other contracts
  • Employment disputes.


  • If contract provides, reliance on force majeure clauses in the proforma Invoice/sales contract and other contracts, is possible. If contract do not provide for such clauses it may not be implied into the contract.
  • Alternatively, it may be possible to rely on the principles of frustration of contract due to impossibility of performance.
  • Possible impact on Loan: Reliance on Bangladesh Bank Circular no. 05/19 of BRPD or any amendment thereof or any possible new circular may be possible, allowing reschedulement of loan.
  • Insurance Arrangements: Need to check whether insurance policy covers such situation.
  • Labour law: Layoff allowing payment of reduced salary etc & if the situation demands in extreme cases, retrenchment under labour law and/or unpaid long leave may be considered.
  • Carriage contract: Exclusion of liability for Act of God may be relied upon.