COVID-19 as a Trigger for Force Majeure: A Global Survey

The potential impact of force majeure in the midst of the pandemic may be overwhelming. Although many issues are still emerging and being discussed, clients and law firms are examining agreements and attempting to determine whether the pandemic is considered a force majeure event that excuses performance.

While businesses consider the full impact of the pandemic on revenues and expenses, legal professionals can be armed with actionable guidance from COVID-19 as a Trigger for Force Majeure: A Global Survey. There’s no need to sift through extraneous language to get to the heart of the issues for your company and clients; this timely publication covers key jurisdictions in the U.S. and around the world, including answers to the following questions and a list of citations for each jurisdiction.

1. How does COVID-19 affect contractual obligations?

2. How are force majeure provisions interpreted in the relevant jurisdiction? Is there a key case that should be considered?

3. What type of events qualify as force majeure in that jurisdiction? Under what circumstances will an event not expressly described be considered a qualifying event?

4. Do courts there construe force majeure clauses broadly or narrowly and on what basis?

5. What steps should you take if you think force majeure might apply to your contracts?

6. Other than force majeure provisions in a contract, are there additional pathways in that jurisdiction for a contracting party to suspend or terminate performance without breaching the contract (e.g., doctrines of impossibility, impracticability, frustration of purpose)?

7. Are there additional contract provisions or principles that a party can leverage as a pathway to excuse its lack of performance in that jurisdiction?

8. What should you do if you receive a force majeure notice?

9. Are there additional remedies for the counterparty (for example, step-in rights, right to cover, increased compensation, the ability to terminate or suspend performance in full or in part)?

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