Force Majeure Clauses Gain Prominence During COVID-19
The COVID-19 epidemic brought to the forefront a contractual concept known as “force majeure.” The term “force majeure” is a French phrase that means “superior or irresistible force.” In contract law, a force majeure clause excuses or delays a party from performing its contractual obligations under the contract due to unforeseen events or circumstances. This often-overlooked term became the focus of countless businesses and nonprofits unable to comply with their contracts due to the outbreak of COVID-19. As our nation deals with COVID-19 and other future outbreaks of disease, force majeure clauses need to be carefully analyzed to determine if they allow a party to escape its obligations. New contracts should be carefully drafted to ensure that COVID-19 or other similar outbreaks continue to constitute a valid reason to terminate or delay a contractual obligation.
Continue reading “Force Majeure Clauses Gain Prominence During COVID-19”