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Covid-19/Coronavirus and Force Majeure Clauses in Contracts

We have received some inquiries from people wanting to know what rights they have under various contracts in light of the Covid-19/Coronavirus pandemic.

This isn’t an easy answer. Many contracts have a force majeure clause that specifically govern when an event outside the party’s control prevents a party from performing its contractual obligations. However, in many contracts, these clauses are an afterthought that don’t receive a lot of attention from the parties or the attorneys drafting the contract.

As a result, it is critical that the parties read their contracts and understand what critical issues they need to know before determining their liability. I’ve written a short paper highlighting some of these issues. You can download the paper here.

If your contract doesn’t have a force majeure clause, then Texas has common law theories of impossibility or frustration of purpose that might be applicable in your situation.

If you have questions about your contracts, feel free to call us at (512)476-4944.

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