Following the declaration by the World Health Organization (WHO)
that COVID-19 is a pandemic, governments and businesses have been
desperately trying to figure out how to address the constantly
changing business environment resulting from this virus. The rapid
spread of the virus and the ensuing social distancing and
self-isolation measures have had a massive impact on the operations
of several businesses, leaving many of these businesses unable to
perform their contractual duties. This post will address when force
majeure clauses can be invoked and main considerations for business
owners during this uncertain time.
Force Majeure
Force majeure clauses are a common clause found in contracts
that excuse or delay performance of the contract when a specified
and unforeseeable event or circumstance arises that is beyond the
control of the parties. Whether COVID-19 constitutes a force
majeure event will likely depend on the language of the clause
itself. Some clauses
