Does COVID-19 Pandemic Justify Invoking the Force Majeure Clause in an International Contract?
“Force majeure” is an event beyond the control of a party to international contract, such as a war, earthquake, tornado, strike, riot, epidemic, that may excuse a party’s performance under the contract.
Parties to international contracts often use force majeure clauses to protect themselves from liability in the event circumstances beyond the parties’ control impede performance. The recent pandemic raises new issues regarding what constitutes a force majeure event. The economic downturn or related events may qualify as a force majeure event in international business agreements.
In order to determine if the COVID-19 pandemic qualifies as “force majeure” in your international business contract, we need to first analyze the international contract itself and any such clauses. We need to interpret the law governing such international contract. We need to interpret the performance you are looking to excused.
If you are affected by COVID-19 pandemic and you are looking for an experienced international business attorney to help you with issues related to performance under international business agreement, call our Phoenix office at 480-425-2009 today for a confidential consultation or contact us via our website.
Please note that this article does not constitute a legal advice. We simplified the law in order to outline if the events caused by COVID-19 pandemic may qualify as “force majeure” and excuse performance under international contract.