As a result of the coronavirus (COVID-19) disruption, there are many businesses that are assessing contracts with respect to relationships with business partners. Many suppliers and manufacturers of goods are unable to deliver in respect to their contract and are looking at how to protect themselves from a default.
Of particular concern in reviewing a contract is the force majeure clause. This clause is intended to the contracted parties of some or all contract obligations if there is an unforeseeable event which is out of the control of either party.
The concept of “force majeure” is that a party’s performance of its contractual obligations may be excused where performance is prevented or frustrated due to an unusual event that is beyond the contracting parties’ control.
There are some things you should know about Commercial Contracts, Government Contracts, and The Uniform Commercial Code (UCC).
Get that information here.