The global COVID-19, or coronavirus, pandemic has caused instability, uncertainty, and a downturn in most industries, and the cannabis industry has not been immune. The pandemic has caused several cannabis companies to terminate deals or modify contracts. However, the ability to terminate deals or modify contracts relies heavily on provisions within the applicable contracts. If a cannabis company is looking to modify a contract or terminate a deal they should begin by looking at the applicable contract and whether or not it contains a “Force Majeure” provision.
For further details on how Force Majeure may apply to your cannabis company’s situation, our firm has written the following articles/blogs on the issue:
- Not ‘If’ But ‘When’ – Navigating a Force Majeure Clause During the COVID-19 Pandemic
- A How-to Guide for Gauging COVID-19’s Effect on California Commercial Contracts
- Contract Matters: Looking Beyond Force Majeure
- The Role of ‘Force Majeure’ in Chargebacks
- COVID-19 and Force Majeure Provisions in EPC Contracts and Other Construction Contracts