To our Clients, Friends and Followers:
While the extent of the Coronavirus is still uncertain and as legal counsel to many local businesses, we have heard from several clients this week that they are starting to feel/see its effect on their bottom line due to the decline in tourism and/or cancellation of conferences/events. The resounding question has been, “What can we do about cancellations and broken contracts?” Well, it all depends on your contract.
Many contracts contain a force majeure clause. This clause can relieve a party of its obligations under the contract when circumstances beyond their control arise and makes performance impracticable, illegal, or impossible. If a contract does not have a force majeure clause, it still may be possible to defend a breach of contract claim on the basis of ‘impossibility of performance.’ So when considering what to do about a cancellation or broken contract, the first step is to determine your rights or duties under your contract.
On a positive note, this morning an $8.3 billion spending bill to combat the Coronavirus was approved, a portion of which will be allocated to the Small Business Administration (“SBA”) for low-interest loans for businesses affected by the Coronavirus. The SBA has not yet issued the specifics on this program, but we do hope to hear something soon.
If we can be of assistance with any of the above, please contact us at (305) 222-7282. And, please stay in the know by following us on our social media platforms linked above.