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Check Contract Language to See if COVID-19 Excuses Performance

by | Mar 23, 2020 | Business Law, Firm News

By Mark Santagata, Esq.
Because of the unanticipated hardships imposed on businesses and individuals by the coronavirus, parties to private contracts may be unable to satisfy their contractual obligations.

Many private agreements contain Force Majeure clauses to address circumstances when the contract cannot be performed due to conditions beyond the control of the parties. The COVID-19 crisis may have created circumstances that excuse performance under Force Majeure provisions.

However, before you can rely on Force Majeure protections the agreement might first require that formal notice be provided to the other party. There may also be deadlines imposed by the contract that require notice to be provided within a limited time after the Force Majeure event becomes apparent.

If you anticipate having difficulty satisfying a private written agreement it is important to understand the contents of the agreement in advance of your default in order to preserve possible defenses. If Cacace, Tusch & Santagata can be of assistance please give us a call at (203) 327-2000.