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ON-DEMAND INSIGHTS

Additional Insights into the Use of Force Majeure for COVID-19

Additional Insights into the Use of Force Majeure for COVID-19

April 13, 2021 at 10:50 AM - commercial contracts,

A year into the COVID-19 pandemic, some businesses are still incurring losses due to COVID-related closures and other restrictions. As we shared last April, the possibility of mitigating those losses by relying on a force majeure provision depends on a variety of different factors, including which state law governs your contract, the exact wording of the force majeure clause contained within it, and other facts and circumstances, such as the subject matter of the agreement and/or the foreseeability of the pandemic at the time you entered into the contract.

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Why Nonprofits Should Care About Force Majeure Clauses

Why Nonprofits Should Care About Force Majeure Clauses

June 17, 2020 at 11:03 AM - Nonprofits,

In this ACC Docket article, Washington D.C.-based member Lakshmi Sarma Ramani explains why force majeure clauses should be reviewed closely by nonprofits to ensure such clauses can be relied upon in the event contract performance (including payment obligations) becomes impossible.

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The Coronavirus and Force Majeure

The Coronavirus and Force Majeure

April 22, 2020 at 3:33 PM - commercial contracts,

The coronavirus has toppled business as we know it, and many companies are attempting to right themselves by scaling back, including seeking to be excused from contractual obligations pursuant to a “force majeure” provision in their agreements. Force majeure is one of a handful of standard “boilerplate” contract terms that is often skimmed over (at best) or overlooked by the parties, given its relative unimportance as compared to more substantive provisions. However, when faced with unexpected and/or uncontrollable circumstances, a precisely worded force majeure clause can sometimes offer a lifeline that will excuse one party’s performance obligations.

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