Abstract

COVID-19 pandemic wreaked havoc and is still wreaking havoc. Brands and retailers have in this chaos invoked force majeure clauses in their contracts to cancel their pending orders. Bangladesh alone has a total of 6bn USD worth of orders unpaid with no payment made for already finished products or bought raw materials. Some companies are considering declaring involuntary bankruptcy as brands have used the order cancellation as a bargaining chip to force a 12% price reduction on already negotiated orders. This essay focuses on whether and to what extent the COVID-19 pandemic can amount to a force majeure event and how and to what extent specific performance of contract is available as a suitable remedy for the RMG in Bangladesh.

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