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With the coronavirus still continuing to spread across the world, few remain immune to the many unprecedented changes it’s causing–including your business. That’s why we’ve created a two-part series detailing some legal options that may help ease the blow for you and your business during these trying times.
Force Majeure
Most contracts contain a “force majeure” (French for “superior force”) clause which excuses performance obligations under exceptional unforeseen circumstances beyond the parties’ control (e.g., natural disasters, pandemics, quarantines, strikes and war) and may apply to a global pandemic such as COVID-19.
A force majeure clause within a contract should be read carefully to specifically identify which events excuse performance.
If properly triggered by a force majeure event, a business owner can be protected from schedule delays created by the force majeure event. A force majeure clause can also protect an owner from paying a contractor and subcontractor for interruptions.
If your business needs to invoke the terms of a force majeure clause in your contract, or if you are concerned about the other party to your contract doing so, call us for help at (949) 436-2785.
Stay tuned Part 2 of our two-part series next week! And till then, stay safe!
This article is informational only and meant to provide guidance. It is not meant to be legal advice and it does not create an attorney-client relationship. For what to do in your specific situation, please consult with a qualified Construction Law attorney.
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