Boilerplate Provisions During Economic Uncertainty

Description

Force majeure is a legal term that has become increasingly familiar outside of the legal field in the aftermath of the business challenges faced in 2020 (and beyond) due to the COVID-19 pandemic and the related economic fallout. However, force majeure is not the only boilerplate or general provision in a typical commercial contract to reexamine under the current circumstances.

The global effects resulting from COVID-19 has led to a reconsideration of several standard provisions. While use of boilerplate language may create consistency and enforceability in contracts, the current climate reinforces best practices that all contracts should be specifically tailored for the parties and circumstances of the arrangement.

Based on these new challenges, counsel should consider revisiting and revising standard provisions of client agreements means of notice regarding delays or shortages, including acceptance or rejection of sales orders, business continuity wind down, force majeure, restrictive covenants, suspension of obligations, termination, dispute resolution, self-help and other provisions.

Listen as our expert panel discusses boilerplate provisions, the impact of COVID-19 and the economic downturn on certain aspects of commercial contracts, and creating an approach that creates boilerplate provisions to mitigate future risk.