> Q: If a contract does contain a Force Majeure clause that includes “epidemic” or some form of the “other causes beyond the reasonable control of a party” language, does that mean one or more of the contract parties do not have to perform, as a general rule?
> A: Not necessarily. First, it should be noted there is not much jurisprudence in the U.S. that address “epidemics” as a Force Majeure event. So the courts have not, to date, had an opportunity to provide clear interpretation or guidance. That is likely to change soon. Second, there needs to be a real causal connection between the occurrence of a Force Majeure event and a party’s ability or inability to perform under the contract. By way of an over-simplified comparative example, consider today’s situation, where there is undoubtedly an “epidemic” of COVID-19 occurring. Most homeowners cannot simply stop paying monthly home mortgage payments even if the loan documents contain language that includes “epidemic” as a Force Majeure event. This is because the Force Majeure event, as expressly stated in the contract, has not directly created an effect that excuses the homeowner’s performance – to pay monthly installments to the mortgage company. In contrast, if a public school district engages a consultant to observe and evaluate students’ use of a new technology in the classroom, and the contract contains similar Force Majeure language, the government’s decision to temporarily close all public schools because of the epidemic precludes the consultant from completing the evaluation.. Very likely, the Force Majeure clause would excuse the delay in the consultant’s performance.
> In between these very simple examples are countless real-world situations that will likely arise as businesses try to predict their respective futures.
French always sounds more impressive.[1][2] Lawyers love to sound grand, as though they're worth what they're paid.
1."Paté de foie" sounds a lot nicer than "liver paste," n'est-ce pas?
2. https://en.wikipedia.org/wiki/Force_majeure