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ARTICLE · 17 JUNE 2021

COVID-19 And Contract Enforcement

There has been much discussion of the legal issues raised by the pandemic when contractual obligations can no longer be met. This memorandum notes some of those issues.

United StatesCoronavirus (COVID-19)

There has been much discussion of the legal issues raised by the pandemic when contractual obligations can no longer be met. This memorandum notes some of those issues.

Waiver

Contracts are voluntary arrangements. Likewise, enforcement of a contract is a voluntary act. One may decide not to insist on strict compliance. This can raise questions as to whether rights have been waived, and, if so, to what extent. Contract rights can be waived "fully or only partially," depending on the circumstances.1

A decision to forbear from the enforcement of a contract right can be a valuable concession that serves as the basis of a new agreement, but ideally the new agreement will be drafted with care. Otherwise the decision can easily turn into a dispute. For waiver of contract rights is an issue of intent,2 and questions of intent are often difficult prove. "[T]he intent to waive is usually a question of fact,"3 therefore any failure to make one's intention explicit and

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