Unpacking Force Majeure Contract Clauses and Supply-Chain Disruptions

This article provides an overview of force majeure provisions and the legal requirements to excuse performance thereunder, including recent decisions addressing COVID-19. As discussed, parties seeking to rely on force majeure provisions must show the pandemic was both contemplated by the parties and directly impeded performance. Suppliers that fail to do so face significant legal obstacles to excuse performance and avoid liability. This article concludes with a discussion of issues to consider in assessing ongoing supply chain risks.

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