What is Force Majeure and How Does it Relate to COVID-19?
Force majeure is a clause in contracts that excuses one or both parties from performing their obligations when an unforeseen event occurs that is beyond their control. In the context of the COVID-19 pandemic, many businesses are wondering how force majeure clauses will be interpreted and applied.
Save 90% on your legal bills
What is Force Majeure?
Force majeure is a clause in contracts that excuses one or both parties from performing their obligations when an unforeseen event occurs that is beyond their control.
What is the Definition of Force Majeure?
Force majeure is a French term that translates to "superior force" or "act of God." It is a clause that is often included in contracts to protect against unforeseen events that may make it impossible or impractical for one or both parties to perform their obligations.
What are Examples of Force Majeure Events?
These events can include natural disasters, wars, riots, and other circumstances that are beyond the control of the parties involved.
How Does Force Majeure Relate to COVID-19?
In the context of the COVID-19 pandemic, force majeure clauses may be invoked by businesses that are unable to perform their obligations due to government-imposed lockdowns, travel restrictions, or other measures designed to slow the spread of the virus.
Can Force Majeure Clauses be Invoked for COVID-19 Related Issues?
Yes, businesses may be able to invoke force majeure clauses to excuse themselves from performing their obligations if they are unable to do so due to government-imposed restrictions or other circumstances beyond their control.
What are the Requirements for Invoking a Force Majeure Clause?
When a force majeure clause is invoked, the party invoking it is typically required to provide notice to the other party and to demonstrate that the event was unforeseen and beyond their control.
Can the Other Party Accept the Excuse or Seek Damages?
The other party may then have the option to accept the excuse or to seek damages for any losses incurred as a result of the event.
How is the Application of Force Majeure Clauses Affected by COVID-19?
The application of force majeure clauses in this context is not always clear-cut, and it may depend on the specific language of the contract and the circumstances of the event.
What are the Implications for Businesses During the COVID-19 Pandemic?
In conclusion, force majeure is a clause in contracts that excuses one or both parties from performing their obligations when an unforeseen event occurs that is beyond their control. In the context of the COVID-19 pandemic, force majeure clauses may be invoked by businesses that are unable to perform their obligations due to government-imposed lockdowns, travel restrictions, or other measures designed to slow the spread of the virus.
