Are Contracts Valid During Coronavirus?
The coronavirus pandemic has caused significant disruptions to our daily lives, from work to travel and everything in between. With many businesses temporarily closed or operating at reduced capacity, many people are wondering whether their contracts are still valid during these uncertain times.
The short answer is yes, contracts are still valid during coronavirus. However, there are certain provisions in contracts that may be affected by the pandemic, and it is important to understand how to navigate these issues.
Force Majeure Clauses
One provision that may come into play during the pandemic is the force majeure clause. This clause relieves parties from performing their contractual obligations when unforeseen events occur, such as natural disasters, war, or epidemics.
If your contract includes a force majeure clause, it is important to review the language carefully to determine whether the pandemic falls within its scope. Some force majeure clauses specifically mention epidemics or pandemics, while others may be more general in nature.
If the pandemic does fall within the scope of the force majeure clause, it may provide relief from performance obligations. However, it is important to note that not all force majeure clauses are created equal, and some may require specific actions or notices before relief can be granted.
Impossibility and Impracticality
Another provision that may come into play is the doctrine of impossibility or impracticality. This doctrine excuses performance under a contract when it becomes impossible or impractical due to unforeseen circumstances.
For example, if a contract requires delivery of goods from a foreign country that is under lockdown due to the pandemic, it may be impossible or impractical to fulfill the contract. However, this doctrine is typically only applied in extreme cases, and the burden of proving impossibility or impracticality is high.
Good Faith and Fair Dealing
Finally, even without a specific force majeure clause or doctrine of impossibility, parties to a contract are still required to act in good faith and deal fairly with each other.
This means that if one party is unable to perform their obligations due to the pandemic, they should communicate their situation to the other party as soon as possible and work together to find a solution that is fair to both parties.
Conclusion
In conclusion, contracts are still valid during coronavirus, but certain provisions may come into play as a result of the pandemic. It is important to review your contract carefully and understand how force majeure clauses, the doctrine of impossibility, and the duty of good faith and fair dealing may affect your obligations.
If you are unsure about the validity of your contract during the pandemic, it is always best to consult with a legal professional who can provide guidance on how to navigate these complex issues.