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3. Throw away your old-standard force majeure language.


If you are negotiating contracts that will be performed during the pandemic, think long and hard about the force majeure and related clauses. Te pandemic raises unique issues. Beyond that, many standard force majeure clauses aren’t that great, and although you might be comfortable relying on a stock force majeure clause in ordinary times, you don’t want to take that risk during a pandemic when the likelihood that someone will declare force majeure is high.


As you draſt new force majeure clauses, keep the following


things in mind.  Te definition of force majeure events should expressly reference the COVID-19 pandemic and explain which COVID-19-related events do and do not constitute force majeure events.


 Be clear about the effect that an unexpected event must have on a party to excuse performance. For instance, does the event have to make performance impossible or merely inadvisable?


 Consider allowing a party to cancel the contract if a force majeure event makes performance of the contract futile or unproductive, not just if it makes performance impossible or impracticable.


Make it clear what happens to the money when a party’s performance is excused because of a force majeure event. As previously explained, it can be tricky to figure out what the parties’ rights are under the common law. Take the guesswork out of it — make the contract clear about where the money goes.


 Pay attention to the whole contract, including clauses related to payments, deposits, refunds, rent abatement and the like. Tese provisions can have a huge impact on the effect of a force majeure clause.


When in doubt, keep calm and call a lawyer who specializes in this area.


 things, she helps clients navigate force majeure issues before and after disputes arise and helps clients negotiate force majeure and related contractual clauses. Stinson LLP is an MBA associate member.


THE MISSOURI BANKER 21


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