Is the COVID-19 pandemic a force majeure event?

It depends on how the clause is drafted. Contracts signed after 2020 increasingly list pandemic and epidemic explicitly; contracts signed before may or may not qualify under catch-all language like "acts of God" or "events beyond reasonable control". Courts have gone both ways.

Does force majeure cover economic hardship?

Usually not. Performance becoming more expensive or less profitable rarely qualifies. The event must generally make performance impossible or commercially impracticable. Some civil-law systems have a separate doctrine (hardship / imprévision / Wegfall der Geschäftsgrundlage) that covers economic disruption.

Do I need to keep paying during a force majeure event?

Typically yes, for obligations already due or performance already rendered. The clause suspends future performance obligations, not past accrued payments. Read your specific contract — the bundling of performance and payment varies.

Force Majeure

Act of God · Superior Force · FM Clause

Force majeure is a contract clause that excuses a party from performing its obligations when extraordinary events outside its control — war, natural disaster, government action, pandemic — make performance impossible or impractical. The clause defines which events qualify, what notice must be given, and what remedies apply.

What a force majeure clause actually does

Without a force majeure clause, a party that cannot perform because of an extraordinary event may still be liable for breach. A well-drafted clause changes that: it lists qualifying events (hurricanes, epidemics, sanctions, strikes), requires the affected party to notify the other promptly, suspends obligations while the event continues, and sets a termination right if the event lasts beyond a defined period. The clause does not eliminate payment of amounts already owed or excuse performance that was merely made more expensive — only performance that has become genuinely impossible or commercially impractical.

Why it matters

Force majeure is what you read first when a crisis hits. Whether a hurricane, sanction, regulatory change, or pandemic excuses your non-performance depends entirely on how this clause is drafted. A narrow clause that only lists "acts of God" may not cover a government shutdown. A broad clause with a non-exhaustive "including but not limited to" list usually covers more than a closed list. Re-reading force majeure clauses in your existing contracts before a crisis — not during one — is how legal teams reduce exposure when the next disruption hits.

Common pitfalls

1.List of qualifying events is too narrow — misses pandemics, cyber-attacks, supply chain disruption, or regulatory change.
2.No notice requirement — or notice deadline so short it is routinely missed when the event hits.
3.Mitigation duty is absent — most courts expect the affected party to make reasonable efforts to perform anyway.
4.Termination right is unclear — what happens if the event lasts 30 days? 90? 180? The clause should be concrete.
5.Payment obligations are bundled with performance — usually payment should continue for work already performed.

Frequently asked questions

Is the COVID-19 pandemic a force majeure event?: It depends on how the clause is drafted. Contracts signed after 2020 increasingly list pandemic and epidemic explicitly; contracts signed before may or may not qualify under catch-all language like "acts of God" or "events beyond reasonable control". Courts have gone both ways.
Does force majeure cover economic hardship?: Usually not. Performance becoming more expensive or less profitable rarely qualifies. The event must generally make performance impossible or commercially impracticable. Some civil-law systems have a separate doctrine (hardship / imprévision / Wegfall der Geschäftsgrundlage) that covers economic disruption.
Do I need to keep paying during a force majeure event?: Typically yes, for obligations already due or performance already rendered. The clause suspends future performance obligations, not past accrued payments. Read your specific contract — the bundling of performance and payment varies.

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