This clause states whether pandemics (like COVID-19) count as "force majeure"—a legal excuse that lets you stop performing your contract without penalty if something beyond your control makes performance impossible. If pandemics are covered, you can pause or cancel obligations; if they're not, you must still perform or pay damages. The UK and US courts don't automatically excuse pandemics—you need the contract to say so explicitly. For example, a restaurant that signed a lease before COVID-19 couldn't use force majeure to stop paying rent because the lease didn't mention pandemics, and courts said lockdowns were foreseeable by 2020.
If you're in a business affected by lockdowns or supply chain disruption (hospitality, events, manufacturing), insist on pandemic coverage. But be specific: define what counts (government-ordered closures, not just illness), set a minimum duration (e.g., "closure lasting more than 14 consecutive days"), and clarify what happens to your obligations (do you pause, or do you owe a reduced payment?). Don't accept vague language like "acts of God." ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause states whether pandemics (like COVID-19) count as "force majeure"—a legal excuse that lets you stop performing your contract without penalty if something beyond your control makes performance impossible.
Why should I care about this clause?
If pandemics are covered, you can pause or cancel obligations; if they're not, you must still perform or pay damages.
What are my options?
The UK and US courts don't automatically excuse pandemics—you need the contract to say so explicitly.
How does this affect small businesses?
For example, a restaurant that signed a lease before COVID-19 couldn't use force majeure to stop paying rent because the lease didn't mention pandemics, and courts said lockdowns were foreseeable by 2020.