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Force Majeure Contract Clauses and the Coronavirus Pandemic

By Geoffrey Berg March 18, 2020 Posted in Blog

With the rapid decline in the world economy as a result of the coronavirus/COVID-19, businesses of all kinds are experiencing interruption unprecedented since the Great Depression. Contracts of sale, transport, employment – all kinds of transactions are affected. Some contract terminations will be excused, others unlawful.

 

Many “cancelled,” or breached contracts may be excused because of what’s known in law as force majeure, a force which prevents compliance. In some cases, parties may use the outbreak as a pretext to breach contracts with which they may otherwise be obligated to comply. In other cases, the outbreak may serve as justification for the cancellation of a contract.

 

In the upcoming days, weeks, and years, businesses and individuals may suffer many billions of dollars in damages – some of which may be recoverable in court. Likewise, business and individuals may be party to a contract which they believe they are prevented from performing. Berg Plummer Johnson & Raval, LLP is available to assist you in bringing, defending, or advising you concerning any contract claim or concern you have. To help to determine how to address your contracts and whether your coronavirus claim is actionable, call us today at (713) 526-0200 or contact us online.

 

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