Can A Contract Be Nullified Due To Coronavirus? Force Majeure Clauses Explained

Article written by Illinois & Iowa Attorney Kevin O’Flaherty

In this article, we’ll define “force majeure” and discuss if this type of clause can really be enforced, how the language of the contract affects a force majeure clause and how to prove or disprove the validity of force majeure clauses in business contracts.

To say the world of business has been turned upside down, inside out and set on fire by the coronavirus might be an understatement. History has shown us that traumatic, world-changing events are not kind to maintaining business-as-usual; with small businesses often taking the brunt of the disruption. As of writing this, uncertainty due to the Covid-19 pandemic still rules the world, causing business owners and clients alike to ask the question, “can I get out of this obligation and cut my loses in order to weather this storm?” From large corporations to mom and pop shops, attorneys will be combing through contracts for months as the economic fallout of the coronavirus outbreak continues.

What Is Force Majeure?

Cornel Law School defines force majeure as:

“A provision commonly found in contracts that frees both parties from obligation if an extraordinary event prevents one or both…