This force majeure contract termination letter can be used to terminate a contract by relying on the 'Force Majeure' clause in your contract if it covers epidemics and pandemics. If a contract is impossible to fulfil or is no longer feasible due to the Covid-19 pandemic, you may be able to terminate or delay the performance of the contract.
When should I use a force majeure contract termination letter?
Use this force majeure contract termination letter:
when you have a contract with another business or individual
when you need to terminate or delay the contract due to the coronavirus (Covid-19) pandemic
where there is a 'Force Majeure' clause in the contract and it expressly covers epidemics or pandemics
where delay or termination of the contract requires written notice
What’s included in a force majeure contract termination letter?
This force majeure contract termination letter covers:
when the contract was entered into
why you want to terminate your contract
when the notice to end the contract is effective
What’s a force majeure contract termination letter?
A letter ending a contract due to Covid-19 is a letter notifying the other party to a contract that you wish to terminate the contract due to the Covid-19 pandemic and when this termination will become effective.
Do I need a force majeure contract termination letter?
If your contract has been affected by Covid-19 which means you can no longer fulfil it or complete it, it may be necessary to terminate your contract in accordance with the 'Force Majeure' clause by using this letter.
What is 'Force Majeure'?
You should read your contracts and see what kind of Force Majeure clause you have in your contracts.
Force Majeure refers to situations where the agreement cannot be performed (eg the obligation to provide payment) because of circumstances outside the control of the parties. However, it depends on the wording of the clause; some may refer expressly to pandemics and epidemics, but bear in mind the majority are usually reserved for cases such as war, riots, civil unrest, floods and fire, etc.
Determining which types of circumstances will be covered by the force majeure clause is essential. Provisions often cover natural disasters like hurricanes, floods, earthquakes, and weather disturbances sometimes referred to as "acts of God." Other covered events may include war, terrorism or threats of terrorism, civil disorder, labour strikes or disruptions, fire, disease or medical epidemics or outbreaks.
Therefore it's important to check your contract to see whether such a clause exists which might 'relieve' the parties from fulfilling their obligations under the contract.
What does a 'Force Majeure' clause look like?
Rocket Lawyer's Services Agreement contains a 'Force Majeure' clause which covers pandemics and reads as follows:
'Neither party shall be liable for any failure or delay in performing their obligations where such failure or delay results from any cause that is beyond the reasonable control of that party.
Such causes include, but are not limited to: power failure, Internet Service Provider failure, acts of God, epidemic, pandemic, civil unrest, fire, flood, droughts, storms, earthquakes, collapse of buildings, explosion or accident, acts of terrorism, acts of war, governmental action, any law or any action taken by a government or public authority, including without limitation imposing an export or import restriction, quota or prohibition, or any other event that is beyond the control of the party in question.'
Ask a lawyer for advice if:
you're unsure if you have a Force Majeure clause in your contract
your Force Majeure clause does not cover pandemics
you're not sure if you can terminate your contract
This force majeure contract termination letter is governed by the laws of England and Wales.