Covid-19 has thrown a wrench in the gears for many companies trying to perform contractual obligations. Whether businesses can invoke force majeure provisions in the agreements, which let them off the hook when certain uncontrollable events hinder their work, depends on the wording.
Qualifying Crises: Businesses in contracts with force majeure provisions that explicitly mention epidemics will have the most success bowing out of their obligations without penalty. In addition, work-impeding “stay at home” orders could qualify as unforeseen government action under some force majeure clauses, according to Akerman LLP attorneys.
Not-So-Easy Out: Companies looking to invoke force majeure in ...
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