Coronavirus and Commercial Contracts
The coronavirus (COVID-19) pandemic has created an unprecedented amount of uncertainty in every business sector and industry around the world. Chances are that your business has contracts that have been or may be affected by the pandemic. Many questions from our clients concern whether the COVID-19 pandemic constitutes a force majeure event and excuses performance under a contract. What is force majeure? Force Majeure – An Act of God. Force majeure, French for greater force, describes any event that is unexpected by all parties, not caused by any party, and affects the relationship between them, limits the ability of either to perform a duty, or requires one to intrude on a privilege of the other. Bouvier Law Dictionary Tennessee courts have defined an “Act of God” as follows: Any misadventure or casualty is said to be caused by “Act of God” when it happens by the direct, immediate and exclusive […]
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