The impact of the coronavirus includes a major wave of significant commercial disputes. We are experiencing a worldwide health and business crisis where the world’s economy, including general industry and business relationships at all levels, are being severely roiled by COVID-19. Contractual liability principles and our court system will be tested by coronavirus well into its aftermath.

By this stage of the novel coronavirus pandemic, businesses and legal practitioners should have scrutinized their contractual force majeure clauses (or a lack thereof). Whether COVID-19 qualifies as a force majeure event will usually depend on the language of the contract. A force majeure clause excuses performance of contractual obligations upon the occurrence of an unforeseen circumstance—and whether COVID-19’s effects on performance will relieve a party of its obligations goes to the plain language of a contract.

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