Introduction
The COVID-19 outbreak has taken a devastating toll on global
health and the global economy. Many businesses are struggling to
satisfy their contractual obligations. In the weeks following
government orders of increasing severity in response to the
COVID-19 pandemic, reality has set in and many businesses are left
wondering how the resulting business downturn might affect the
enforcement of their commercial contracts.
Businesses may be able to leverage the legal doctrine of force
majeure, or perhaps other non-contract remedies, as a means of
suspending their contractual obligations and/or terminating the
subject contract. However, as summarized below, these doctrines are
narrowly construed and must be analyzed carefully in order to
determine their effectiveness for the given facts and
circumstances. Finally, in certain very limited instances,
companies may be able to make claims under their business
interruption insurance policies, subject to their