Business Studies Journal (Print ISSN: 1944-656X; Online ISSN: 1944-6578)

Abstract

Force Majeure and Covid-19

Author(s): Bashar Malkawi

Force majeure is a common clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties occurs, such as a war, strike, riot, crime, epidemic or an event described as act of God, prevents one or both parties from fulfilling their obligations under the contract. In practice, most force majeure clauses do not excuse a party's non-performance entirely, but only suspend it for the duration of the force majeure.