Impracticability Under the UCC Can Help Sellers During Covid-19
The Covid-19 pandemic has left many sellers of goods unable to complete contractual obligations, or has significantly delayed their ability to do so. Many state and local government shutdowns of “non-essential” businesses, and restrictions on the importation of various vessels, slowed finished products and raw materials that certain companies need to produce goods for their customers.
While a number of sellers may turn to force majeure clauses or argue that the Covid-19 pandemic made performance “impossible” under common law principles, sellers of “goods”—essentially anything moveable, including food products and crops—may find additional help under Section 2-615 of the Uniform Commercial Code if government regulations or certain market conditions affected their ability to perform.
Read the entire article here.
Key Contacts
This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.