COVID 19 – How Does It Affect Contractual Obligations?

Sometimes, a business can be excused from performing under a contract due to a force majeure or an “Act of God” provision in that agreement. However, given that COVID 19 is a new phenomenon, there is no clear law on (1) whether COVID 19 qualifies as an “Act of God” or a force majeure event and (2) many contracts will need to be interpreted to determine whether their particular force majeure clauses encompass COVID 19.  Needless to say, the parties may disagreed about the interpretation. 

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