The COVID-19 pandemic continues to impact businesses throughout the U.S. and around the world. Many complex issues and liabilities remain, even with new guidance and regulations being issued daily.
For most agencies and integrated marketing communication firms, one issue likely to arise is whether businesses must fulfill contractual obligations to clients, vendors and other partners in light of the pandemic or whether a party to a contract can be relieved of performing (or paying) under the contract due the pandemic. Among the many types of contracts impacted are agency client agreements, real estate leases and event and production contracts that were planned, with contracts signed, prior to the pandemic.
Agencies must rely on the particular terms of specific contracts in assessing their rights and remedies. However, certain key legal principles are applicable and should be considered.