Business

Exploring COVID-19 and Breach of Contract Cases

Without a doubt, the COVID-19 has taken the entire world by storm. While this pandemic showed up in China before Christmas, it did not reach the United States until January or February. It didn’t take long for the COVID-19 pandemic to sent the entire country into a state of lockdown, as much of the country was forced to shutter around March or April. Even though the country has started to reopen since this time, many people are wondering if another shutdown is looming. As a result, this has placed the prospect of COVID-19 and breach of contract cases in the spotlight.

There are several ways that breach of contract cases might show up. Many of them have to do with the agreements that usually take place between distributors and suppliers. For example, many suppliers get their supplies from overseas. These could be coming from parts of the world that might not have reopened yet. As a result, they might not have what they need to fulfill the contracts that they have signed with their distributors. This could lead to a breach of contract case where the recipient is the aggrieved party because the supplier cannot fulfill his or her end of the bargain.

The other way a breach of contract case might manifest is in the exact opposite direction. With many businesses forced to close during the pandemic, their revenue has been shot. They might not have the money to pay the supplier. This could create a breach of contract case where the business is unable to pay the supplier for the goods and services they received. This could place both parties in a difficult position.

Now, the only question is how a breach of contract case is going to be handled in this situation. The situation above applies to countless businesses all over the country. It is possible that some parties might try to invoke something known as a force majeure. For those who might not know, this is a clause in a contract that explains why someone might not be able to fulfill the contract. Anything from government regulations to an epidemic might be included in the contract and this could lead to a force majeure in a breach of contract case. It is incumbent on everyone to read their contracts carefully because this could play a role in an upcoming breach of contract case.

These are a few of the most common situations where a breach of contract case might come into play during the pandemic. There has been a lot of stress placed on the economy by the pandemic and we are only now starting to see the full effect.

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