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21 September 2020 ·

Business Disruption and Commercial Contracts (Part 2): What Is The Actual Cause Of The Disruption?

Force majeure and related doctrines may allow a contracting party to suspend or terminate performance when certain unforeseeable events that are beyond the control of the parties occur, such as a global pandemic or government action or prohibition. However, the mere existence of a force majeure clause and qualifying event may not excuse non-performance if that event is not the actual cause of the business disruption.

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