In these unprecedented times of COVID-19, business owners are
facing unprecedented hardship and economic losses.
Contractually, how a party defines the parameters of Force
Majeure/Act of God will be crucial to the interpretation. Legal
consideration is highly recommended before a decision is made to
not perform the terms of the contract. Heavy penalties can be
granted for failure to live up to contractual obligations. However,
if it is a valid Force Majeure event, your company may not be
obligated to live up to the agreed upon contract. Similarly, if the
party you contracted did not live up to its obligations you may
have recourse depending on the wording of the Force Majeure
clause.
