Many food and beverage industry companies are assessing whether
they can be excused from or enforce contract performance under
force majeure clauses in light of COVID-19 and related government
action.
Force majeure is a legal term of art, meaning “superior
force.” A force majeure clause is not intended to buffer a
party against the normal risks of a contract such as market
fluctuations. Instead, force majeure clauses create a defense
against liability (in whole or part) if a party is unable to
fulfill its contractual obligations and/or liabilities due to
events that are out of their control and that the parties could not
reasonably foresee at the time they entered into the contractual
agreement.
