Coronavirus as an Act of God: Force Majeure Clauses Explained

Companies affected by Covid-19 are looking to contract terms to minimize their financial losses as the pandemic forces closures and cancellations, and craters productivity in many industries.

Business contracts often include force majeure protections that let parties off the hook for obligations that go unfulfilled thanks to “acts of God” and other events beyond their control. Force majeure is French for “superior force.”

The clauses could prove a saving grace for some companies amid the chaos, but lawyers must comb through contracts carefully to determine what’s covered and what’s not.

1. What Is Force Majeure, and How Is it Used? ...