Are you a supplier? Do you expect that your ability to perform will be interrupted by COVID-19? Are you a buyer? Do you expect your supply chain to be interrupted by COVID-19?
It is important early on in this crisis to examine your supply contracts to determine whether they contain a force majeure clause that might excuse or delay performance in the event of a natural or man made disaster. Whether a force majeure provision will excuse performance interrupted by COVID-19 will depend upon its terms. If your contract does not contain a force majeure provision or if its terms are not going to apply to COVID-19, there may be provisions of the Uniform Commercial Code that will govern an interruption in performance.
Expect a wave of litigation over force majeure. Best to get in front of it now.
