Illinois Bankruptcy Court Takes First Swing at Applying Force Majeure to Nonperformance Due to COVID-19

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With the onset of closures and quarantines early this year due to the spread of COVID-19, businesses across the country were confronted with the issue of how to perform their contractual obligations while they were unable to operate under normal conditions (or, in some cases, unable to operate at all). In many instances, they could not. The extraordinary circumstances of state and local governments ordering the closure of businesses and prohibiting the congregation of groups of people mean that many businesses that found themselves in this position will likely turn to force majeure clauses to excuse their nonperformance.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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