What is force majeure? What is contract impossibility? What are my options?

Описание: As a result of the current pandemic gripping the United States and the world, companies everywhere have been overwhelmed by the loss of customers and the need to reduce operations, layoff staff, and transform their businesses in ways they could never foresee. The loss of business caused by the COVID-19 pandemic has put many businesses in jeopardy of defaulting on contracts, either because of an inability to pay, lack of demand, or both.

As a business owner, you must consider your options and potential remedies. One ancient doctrine of the law – that of force majeure – offers some guidance on how a business may achieve some relief from obligations that have now become exceedingly difficult due to circumstances not contemplated by the parties at the time of contracting.

“Force majeure” – from the French for “superior force” – is a legal doctrine that excuses a party’s nonperformance under a contract when extraordinary events prevent a party from fulfilling its contractual obligations.

Similar to force majeure, The doctrine of impossibility excuses both parties from their obligations under a contract if the performance has been rendered impossible by events occurring after the contract was formed.

In sum, force majeure and the doctrine of impossibility may provide a contracting party with a viable defense; however, these defenses present significant evidentiary challenges that require an experienced attorney. If your business is facing such difficulties, McCormick Law & Consulting is here to help. Please give us a call to discuss your contract, analyze potential solutions, and assist with the best path forward. We love working with business owners and entrepreneurs throughout Virginia and North Carolina.