Many contracts are being pulled out for review to ascertain how COVID-19 affects them. I have received some preliminary inquiries and briefly address the topic here.
Contractual force majeure, or “acts of Gd,” provisions found in a contract are a specific variation of a party’s inability to perform due to performance having been rendered impossible. Because establishing a claim of impossibility sufficient to release a party from its contractual obligations is difficult, establishing force majeure claims are challenging as well.
In one Court of Appeals case, where a property owner’s literal inability to procure sufficient insurance ended in the landlord declaring a default, the court upheld the default, explaining: