The novel coronavirus known as COVID-19 is causing factory and office closings, travel bans, and event cancellations. A ripple effect is inevitable, leaving countless business relationships in the lurch. Contracts created these relationships, so the parties to them will be grappling over who should bear the risk of loss because of COVID-19.
Suspending or even cancelling contracts in response to COVID-19 may not be as easy as expected. In fact, such actions may expose companies to significant liability. Within this Client Alert, we share our considerations on assessing the contractual risks.