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April 9, 2020 - by Iain Elder, Nicholas Buckworth, Ben Shorten, Xiaogang (Sean) Wang, Daryl Chew, Jonathan Swil and Danielle Altink from Shearman & Sterling for www.leehamnews.com

Editor's Note: Airbus, Boeing and Embraer and other OEMs face requests for deferrals and perhaps cancellations of orders as a result of COVID-19. In addition, Boeing now faces cancellation requests for the 737 MAX grounding, now in its 13^th month.

While Boeing's contracts generally allow Boeing or the customer to cancel the order after the 12^th month, the COVID crisis raises a new element: canceling by Force Majeure and something called the Doctrine of Frustration.

The following analysis appeared March 12, 2020, on the website of the law firm Shearman & Sterling law firm. The authors are listed at the end of this article. It is reprinted here with permission.

Following the rapid spread of the novel coronavirus ("COVID-19") that was first reported in Wuhan, China at the end of 2019, the World Health Organization declared COVID-19 to be a pandemic on March 11, 2020.

In this note, we consider how force majeure provisions in commercial contracts and the...

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