Force Majeure Clauses: What Are They and Do They Apply in Issues Caused by COVID19?

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Date

2020-04-10

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Abstract

2020 has been a challenging year with the global economic shutdown from COVID-19 leading to disruptions in many industries. Agriculture has had its fair share of disruptions from this global pandemic. Such disruptions have raised questions for many of you about your contracts to supply farm products to businesses, such as restaurants or schools, that no longer need those products due to shutdowns. You may also have issues finding labor to help move products to customers. Contracts between suppliers and customers often include provisions called force majeure clauses. These clauses allow one or both parties in a contract to excuse the performance, in this case, the fulfillment, of the contract in certain situations.

Notes

2020 has been a challenging year with the global economic shutdown from COVID-19 leading to disruptions in many industries. Agriculture has had its fair share of disruptions from this global pandemic. Such disruptions have raised questions for many of you about your contracts to supply farm products to businesses, such as restaurants or schools, that no longer need those products due to shutdowns. You may also have issues finding labor to help move products to customers. Contracts between suppliers and customers often include provisions called force majeure clauses. These clauses allow one or both parties in a contract to excuse the performance, in this case, the fulfillment, of the contract in certain situations.

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