As business has slowed due to the coronavirus pandemic, anxiety about supply chain disruption has increased. One step any company struggling to meet its obligations under contracts can take is to review its distribution, event and supply contracts for a clause known as the Force Majeure Clause. This clause is present in most commercial contracts and serves to excuse a party’s performance of its obligations under the contract when circumstances beyond the party’s control arise to make performance impossible. Recent governmental actions taken to combat COVID-19 and the resulting closures, shortages and limitations on public gatherings are likely to generate an increase in the number of parties hoping to avoid having to perform under contracts.
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