As COVID-19 Spreads, Companies Should Consider Possible Assertions of Force Majeure, Impossibility, or Frustration of Purpose
Is Force Majeure Triggered?
Force majeure clauses may excuse non-performance with a contract when extraordinary events or “acts of God” prevent a party from fulfilling its contractual obligations. As coronavirus disease 2019 (“COVID-19”) spreads across the globe, parties may seek to argue that a force majeure provision is triggered or have concerns that a counterparty may invoke a force majeure provision. While the relationship between COVID-19 and a specific force majeure provision is dependent on the particular language of the provision and the applicable jurisdiction’s laws, the discussion below outlines general considerations.