Contracts
May 27, 2020
Is the force majeure clause about to go viral during the pandemic?
Previous articles indicate that if COVID-19 is a force majeure event, it is one like no other ever litigated: a worldwide pandemic, occurring in continuing phases, with no known cure or end, and a waterfall of events, specifically including social and economic shut down of most the United States and a number of other countries.
Elizabeth Martyn
Partner
Cota Cole & Huber LLP
Almost all contracts have a force majeure clause toward the end, lost in the middle of the other standard conditions that people rarely read. The purpose of the clause is to excuse or allow delayed performance due to an act of God or third parties that was not the fault of either party. The combination of COVID-19 and responsive governmental orders undoubtedly will lead to parties to a contract invoking the clause.
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