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April 17, 2020

FROM: Steven Davi

Steven N. Davi

Executive Director and General Counsel

FROM: Steven Davi

Please see the attached sample Notices of Force Majeure Events (with and without drafting guidance) that you should feel free to conform to suit your individual needs to the extent you have not already provided notice to your contract partners in this regard.  Also attached is the article we originally circulated to you on March 12 regarding force majeure in the context of disease-related delay claims. 

As you are aware, in many commercial agreements, the parties stipulate that certain events beyond a party’s reasonable control that prevent or delay the party’s performance (“Force Majeure”) will constitute a reasonable and acceptable excuse for that party’s inability or delay to perform under such agreement.  Typical Force Majeure events include natural causes (fire, storms, floods), governmental or societal actions (war, invasion, civil unrest, labor strikes), infrastructure failures (transportation, energy), etc.  Force Majeure clauses usually exclude overall economic conditions such as stock market or interest rate fluctuations that may affect businesses or the economy generally.  The party affected by Force Majeure is usually obligated to provide written notice to the counterparty of the occurrence of the Force Majeure event (in reasonable detail) and the expected duration of the event’s effect on the party.

Please feel free to contact the Allied office directly with any questions you may have in this regard.

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