We've all seen the COVID-19 fall-out in the past few
weeks—indeed, we've all lived the fall-out. But the
promotions, events, and hospitality industry has been particularly
hard-hit by the recent restrictions on public gatherings and
travel. From Coachella to SXSW to the Olympics, events around the
globe have been cancelled, rescheduled, or postponed
—sometimes indefinitely—due to the pandemic.
These postponements and cancellations have put companies
sponsoring promotions such as sweepstakes and contests, events, and
ad campaigns linked to these postponed events in a difficult
position. How do companies protect themselves from potential
liability associated with the postponement or cancellation of a
sponsored event? Can one change the terms and conditions of
sweepstakes associated with an event to when the event is postponed
or cancelled? Those of us familiar with contract law
understand how important a well-drafted Force Majeure clause can be
in this situation.
