COVID-19: May the Force (Majeure) Be With You

The strain of of the corona virus pandemic is not only a threat to our health and safety, but it is also creating economic hardship for people, businesses and entire industries.

As the ability to perform obligations under existing contracts are being strained, whether for supplies, paying rent or making payroll, parties to agreements are doing more than exercising self-help or looking to the government for assistance. They are also calling their lawyers to find out if anything in their contracts will allow them to legally extricate themselves from the obligations that may have seemed routine only a few months ago.

One of the primary areas of contractual inquiry has focused on the force majeure or excusable delay clause that is ‘boilerplate’ in many agreements. Force majeure literally translated from the French means ‘superior force’ and refers to situations in which some external intervening event has impaired a party’s ability to perform its obligations under the contract and allows that party’s performance to be excused.

For some insight on how effective, applicable and even understandable these so-called ‘standard clauses’ are, you can take a look at my Insight Note: Managing Contract Risks & Remedies in a Time of Coronavirus.

You might also check out a similar Insight Note from my partner and colleague, Juan Zuniga entitled:  Memo on Force Majeure and COVID-19 which goes into great detail as to how the law in California might be interpreted in light of the current health crisis.

In fact, you can find all of the recent Insights from Rimon Law professionals on our Insights & Analysis page and once again a reminder that Rimon lawyers and legal professionals are always available to help.