The coronavirus disease 2019 ("COVID-19") has shaken
up a host of industries, including sports, which by its very nature
requires large gatherings of spectators. In the midst of so much
uncertainty, properties, sponsors, and event producers are weighing
public safety concerns with the integrity of the sport -- and the
commercial impact that COVID-19 may cause. As a result, these
parties are paying closer attention to an oftentimes forgotten
contractual provision, typically tucked away -- if included at all
-- near the end of an agreement. We're referring to none
other than the "force majeure" clause.
For starters, what is force majeure?
Force majeure is French for "superior force." It is not
necessarily a right to terminate an agreement, but rather it
excuses a party's non-performance due to circumstances beyond
its control. Essentially, it is a defense to breach of
contract. However, the force majeure defense is construed
narrowly: only when the force majeure