Covid-19 has shuttered businesses, wreaked havoc on the economy, and disrupted contractual agreements worldwide. As parties assess the fallout, many legal teams are exploring whether to turn to a rarely tested section of their contracts: the force majeure, or act of god, clause. Reserved for relieving parties from their obligations due to extraordinary events that make contract performance impossible — such as extreme weather, war, or terrorism — force majeure is notoriously difficult to invoke. Bloomberg Law explains the force majeure clause in this video, featuring Bloomberg Law’s
Editor’s note: The NBA contract stipulates the league can dock 1/92.6 of a player’s seasonal salary per canceled game. For the purposes of force majeure, the league considers a season to consist of five preseason games, 82 regular-season games and 5.6 playoff games.