When Things Are Not “Business as Usual”: COVID-19 and Contract Defenses

Michael R. Darbee, Jonathan M. Korn, and Adrienne C. Rogove

The coronavirus COVID-19 health crisis has interfered with ongoing and future business arrangements throughout New Jersey. As a result, New Jersey businesses that are parties to existing contracts may have rights in the event that they, or their counterparty, are unable to meet their obligations due to COVID-19. There are several legal doctrines that New Jersey businesses may look to in these situations, including impossibility, impracticability, frustration of purpose, and force majeure.

Generally, contract liability is strict liability. This means that a party who breaches a contract is liable for damages even without fault. See Restatement (Second) of Contracts, ch. 11, Introductory Note. However, a party may be able to invoke impossibility, impracticability, frustration of purpose, or force majeure to excuse its failure to perform its contract obligations based on an unforeseen supervening event. Continue reading “When Things Are Not “Business as Usual”: COVID-19 and Contract Defenses”

COVID-19 Resources for New Jersey Individuals and Businesses

The outbreak of the novel coronavirus (“COVID-19”) is impacting businesses and public life in New Jersey and around the world. From supply chain disruption, government-ordered closures, and event cancellations to employee safety concerns and social distancing recommendations, every company is facing its own unique challenges in the face of the uncertainties surrounding this global pandemic.

How Can We Help

Blank Rome’s Princeton office, as well as Blank Rome’s Coronavirus (“COVID-19”) Task Force (“Task Force”), is monitoring this ever-changing situation and is here to help. The Task Force is an interdisciplinary group of the Firm’s attorneys with decades of experience helping companies and individuals respond to the legal fallout from disruptive crises and disasters.

Our multifaceted team includes insurance recovery, labor & employment, maritime, litigation, corporate, real estate, and cybersecurity & data privacy attorneys prepared to analyze your issues from every conceivable angle to ensure a holistic, complete, and comprehensive approach to your specific needs and issues. Our Princeton attorneys are ready to assist New Jersey businesses that must respond and prepare for an evolving public health emergency.

Latest Executive Order

You can download or view the most recent Executive Order from Governor Phil Murphy of the State of New Jersey setting forth what business are deemed essential and permitted to remain operating.

Stay Informed and Updated

Our Task Force continues to update businesses on these and other emerging issues in this rapidly developing legal landscape and has developed helpful and practical preparedness guidance; answers to common questions; and other materials for both individuals and businesses affected by COVID-19.

Links to our most recent guides can be found below:

For the latest updates and to see all our COVID-19 resources, please visit our Coronavirus (“COVID-19”) Task Force page regularly or subscribe to receive our digest published twice a week.