How The COVID-19 Pandemic Affects a Force Majeure Clause

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With all eyes on the mounting development of the COVID-19 pandemic, government officials predict that it could last for months. With the economy in question, many businesses are uncertain of their future especially concerning contractual obligations. How best can businesses fulfill their obligations under a contract? To answer this question, business leaders must address any Force Majeure Clause concerning their contract obligations.

What Is A Force Majeure Clause?

Force Majeure regarding contracts is any event that parties in a contract cannot predict or control such as wars, natural disasters, civil disturbances, and uprisings. These events under a Force Majeure must be analyzed to determine if the event qualifies to enact this clause. Any Act of God may be defined by some as a Force Majeure such as a health pandemic, but the Courts have authority to determine if such an event qualifies as a Force Majeure under contract before releasing any party from their obligations to fulfill their responsibility regarding their contract.

In Florida courts, for example, government policies that indirectly affect the economic conditions of any contract do not necessarily qualify the use of Force Majeure. Economic hardship also does not qualify as a Force Majeure event. An in-depth analysis of what is considered to be eligible for a Force Majeure clause is therefore vital.

Getting Professional Assistance

It is anticipated that due to the COVID-19 pandemic there will be many legal issues between businesses who have contracts and wanting to know if this event qualifies for a Force Majeure Clause to be enacted.

Having a professional legal team on your side will help you to understand your obligations and rights concerning this pandemic as well as helping you through the tough legal issues that may arise in the months and years ahead.

The professional global law firm of Diaz, Reus, and Targ, LLC has provided helpful information on the matter.

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