While there is a need to perform retrospective analysis to assess how COVID-19 issues will play out under existing contracts, there is no need to propagate uncertainty in new contracts. Under the Force Majeure clause, the screen printer is excused from performance because its business is closed due to the unforeseen pandemic of COVID-19. It … Force majeure clauses in any contract entered into going forward will likely not apply to any future consequences of COVID-19 or to any future waves of COVID-19 since those consequences and waves are now foreseeable. However, other contract provisions potentially could allow COVID-19-related cost relief, under other contract clauses described below. Force majeure clause. Whether or not COVID-19-related events fall within a force majeure clause depends on the precise wording of the contract. COVID 19 Clause for MAR Buy-Sell Agreements The Forms Screening Group of the Montana Association of REALTORS® (MAR), with the assistance and advice of MAR legal counsel, has approved a clause for MAR members to use in any MAR buy-sell agreement. This clause is not required. The events of COVID-19 … clause, it likely would not authorize additional compensation, even if the COVID-19 pandemic increases contract costs. Not if the screen printer’s contract has a Force Majeure clause in place. “It’s granting an extension for everything that goes into a … More often than not, “Covid Clauses” provide flexibility when it comes to time. This common contract provision relieves a party from … Force majeure will only excuse non-performance of a contract if the contract contains a force majeure clause. Significantly, ConsensusDocs is the only publisher of such a clause. Waiting until the contract drafting phase, when one side’s lawyer adds a whole batch of COVID-19 related clauses in the revised contract, is not ideal. It is a clause designed to address concerns that parties Many contracts include a force majeure or Act of God clause that allows one or both parties not to perform its obligations under the contract if certain events occur. Clauses also may address what happens if one of the parties has to go into quarantine or allow buyers to exit the contract if they lose their job prior to closing. Contracts Going Forward Now that COVID-19 is a Foreseeable Risk: A key contractual step recommended going forward in these times of uncertainty is the use of price escalation/de-escalation clauses. Many articles and webinars have focused on how traditional contract clauses in existing contracts may respond to COVID-19 issues. In the wake of the COVID-19 pandemic, real estate brokers have prepared suggested clauses for inclusion in real estate agreements of purchase and sale to address certain closing concerns that may be relevant during the course of the pandemic. The fit is not always clear. Changes Federal procurement contracts generally must include some variation of a Changes clause. The fit is not always clear. Careful contract drafting can save a company’s future when an “act of God” or other extraordinary circumstance, like the COVID-19 pandemic, makes performance impossible.A force majeure contract clause, specifically, can be a powerful tool for excusing non-performance, or delayed performance, of contractual obligations. These factors, and many others related to COVID-19, depend on the bargaining power of the parties, the type of project, and the amount of risk avoidance or willingness of the respective parties. 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