Force Majeure – The Contract Clause of COVID-19

Force Majeure is a legal definition encompassing a collection of unlikely yet not impossible hindrances to performance in a contract – such as a fire, a flood, an Act of God,  or possibly a global pandemic among other things.

A force majeure clause in a contract generally excuses any or all delays in performance as well as non-performance in accordance with the other terms and conditions of an agreement due various circumstances outside the control of the party.

Whether or not force majeure clauses will be widely triggered as a result of the COVID-19 remains to be seen although the inability to physically visit specific locations and workplaces deemed non-essential may indeed render performance impossible in many instances.

Language in force majeure contracts usually also includes the following as excusable reasons for non-performance or delayed performance:

  • government regulation
  • accident
  • interruption of telecommunications facilities
  • labor dispute
  • civil unrest
  • unavoidable breakdown.

Force Majeure and how it may impact businesses and the economy continues to be a leading topic and cause for concern during the COVID-19 pandemic.

RealDealDocs allows you access to numerous contracts which have already been successfully implemented – and each document may be downloaded for further editing.

Here are several contracts and agreements containing force majeure clauses currently available on RealDealDocs.com:

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