Q: Due to unforeseen circumstances with Covid we are unable to meet the minimum sales requirements of a business contract.
The contract has no force majeure section. Have we any recourse in this matter?
A: It is necessary to review the contract to provide an effective legal answer. However, no one is oblogato the impossible, if it is really impossible. Impossibility does not mean that it is more costly, it means that there is no way to achieve that purpose. Now, to interpret what Impossible means some contracts include a reasonable or best efforts clause. This clause helps to know what constitutes impossibility.
That said, your options are to try to comply to manifest to the other party that you cannot perform under the contract. Sometimes, this can result in damages. Whether compensation is possible depends of each case. Now, the other party has the obligation to try to mitigate by looking for performance with another person or company. If the other party makes no intent to mitigate they will not be able to ask for compensation.
Finally, regarding the specific consequences of the failure to perform, again, it is necessary to have an attorney look the contract.
ATTENTION. The answers here provided are not intended to be exhaustive and do not constitute legal advice, nor do the questions and answers create any attorney-client relationship or duty on our part to assist you.
Tim Akpinar agrees with this answer
A: An attorney would need to see the entire contract to offer meaningful input. Ms. Mateus raises a good point there. There could be provisions other than a force majeure clause that are significant. Whether they would work to your benefit or detriment could depend on your role and capacity in the contract and whether you are contemplating claims or seeking to defend against them. An experienced attorney might be able to identify other legal theories or issues by reviewing the contract in its entirety. Good luck
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