The COVID-19 pandemic has focused attention on a contract clause that normally doesn’t get noticed much: force majeure. This clause, which is infrequently invoked, deals with situations where one party is unable to uphold their obligations due to circumstances beyond their control. Partners Dave Clar of the Rochester office and Elliot Hallak of the Capital Region spoke recently to a reporter for the Rochester Business Journal about what to expect as the force majeure clause gets interpreted in the age of COVID-19.
Prior to this, force majeure clauses have “been largely ignored prior to this,” Clar told the RBJ. The consideration of force majeure under COVID-19 offers a level of uncertainty because “nobody has ever dealt with a situation that has the impact this pandemic has had with a complete global shutdown,” Hallak said. Click here to read more. To listen to a Harris Beach podcast on the subject, click here.