Can Force Majeure Hold Up in Court During Virus Pandemic?

May.08 — Covid-19 has shuttered businesses, wreaked havoc on the economy, and disrupted contractual agreements worldwide. As parties assess the fallout, many legal teams are exploring whether to turn to a rarely tested section of their contracts: the force majeure, or act of god, clause. Reserved for relieving parties from their obligations due to extraordinary events that make contract performance impossible — such as extreme weather, war, or terrorism — force majeure is notoriously difficult to invoke. Bloomberg Law explains the force majeure clause in this video, featuring Bloomberg Law's Ellen M. Gilmer and University of Colorado Law Professor Andrew Schwartz.

Watch the video at Bloomberg – Corona Outbreak