COVID-19 Contract Defenses
As states across the United States close non-essential businesses and countries around the world restrict their borders in response to the COVID-19 crisis, the economic impact of these governmental actions are manifesting. Companies small and large are examining their contracts to determine whether they must still perform what may be burdensome contracts under the circumstances. Alex Spiro examines one key contract provision and two common law doctrines that may excuse nonperformance: force majeure, impossibility, and frustration of purpose. Though each case is highly determinant on the specific contract language and the particular jurisdiction's laws, Spiro explains these broad principles as a starting point to evaluate contract obligations and liabilities.
