The Coronavirus has hit the United States with a fury. It is pretty clear that it will be headline news for the weeks to come. With all of the information on the news, people are starting to panic and toilet paper is flying off the shelves. But what happens when you have an event scheduled within the next several weeks? Maybe you’re getting married or throwing that big birthday bash but the Coronavirus is scaring your guests off- do you cancel and try to get your money back? Do you reschedule? Can you even get your money back?

The answer is: it depends on the language in the contract itself. Many contracts have clauses for acts of god that would allow you to get your money back but in the traditional legal sense the Coronavirus cannot be classified as an act of god, which is more along the lines of a hurricane or earthquake. Other contracts have clauses titled Force Majeure Provisions. Force majeure is a “clause[] excusing nonperformance due to circumstances beyond the control of the parties.” Kel Kim v. Central Mkts., 70 N.Y.2d 900, 902 (1987). So can you cancel that contract because of the coronavirus? It depends on what the clause says. I always tell my clients that they and their businesses live and die by the language in their contracts and those contracts should be reviewed and updated at least once a year.

If you want to read more about this I am linking a great article below. And always consult with your attorney!

https://www.law.com/newyorklawjournal/2020/03/09/contractual-force-majeure-provisions-and-the-spreading-coronavirus/?slreturn=20200212160929