News & Resources

Managing Contractual Relationships During the COVID-19 Crisis: Force Majeure Clauses and Other Approaches

By John J. Siciliano

3/18/2020 is not “business as usual”. Organizations of all sizes and spanning virtually every industry are being heavily impacted by the COVID-19 global health crisis. As you assess the short and long-term implications for your business or organization, you may find that you or a third-party partner is unable to perform the essential terms of a contract. Many agreements include language designed to address exactly these types of situations. Often referred to as Force Majeure clauses, these provisions set forth the circumstances under which the parties are excused from performance, and can help you determine parties’ rights given the situation we find ourselves in now.

Can and should you invoke a Force Majeure clause? If your contract with another party does not include one, what’s next?

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