As we are dealing with the Coronavirus Pandemic it is important that business owners and service providers start looking at their contracts. These are the times where a well drafted Force Majeure clause can help limit your liability to your customers during this time. A force majerue clause includes language the excuses a parties liability under a contract in the event of an “act of God” or some unforeseen global situation that is out of the control of the party who is unable to perform the services under the agreement.
Example: Let’s say that you contracted for a bus chartering service and the coronavirus side effect is requiring all employee to stay home and there is a state mandate limiting the use of chartering services. In this case this is something that is outside of the control of the chartering service and will prevent them from completing the contract at that current time. The force majeure clause will allow the chartering company to either postpone the service or refund the deposit without being in breach of the contract where they would be susceptible to damages beyond the deposit amount.
I hope this helps you understand the importance of preventative contracting and one of the vehicles to do so.
Protect your interest loves