Honored to have an article I (Joe Rosenbaum) wrote: “Managing Contract Risks & Remedies in a Time of Coronavirus”, published by Thomson Reuters in the June 2020 issue of Cyberspace Lawyer! Many thanks to the Editor-in-Chief, Michael D. Scott, a long-time professional colleague and good friend!
Since that article was submitted for publication, an interesting new development arose at the end of June which was also posted here on Legal Bytes. A bankruptcy judge in Illinois has opined on at least one instance where a party to a real estate lease agreement can take advantage of such a clause. You can also read that update right here: COVID-19 and Force Majeure: What’s In Your Contract?
The strain of of the corona virus pandemic is not only a threat to our health and safety, but it is also creating economic hardship for people, businesses and entire industries.
As the ability to perform obligations under existing contracts are being strained, whether for supplies, paying rent or making payroll, parties to agreements are doing more than exercising self-help or looking to the government for assistance. They are also calling their lawyers to find out if anything in their contracts will allow them to legally extricate themselves from the obligations that may have seemed routine only a few months ago.
One of the primary areas of contractual inquiry has focused on the force majeure or excusable delay clause that is ‘boilerplate’ in many agreements. Force majeure literally translated from the French means ‘superior force’ and refers to situations in which some external intervening event has impaired a party’s ability to perform its obligations under the contract and allows that party’s performance to be excused.
For some insight on how effective, applicable and even understandable these so-called ‘standard clauses’ are, you can take a look at my Insight Note: Managing Contract Risks & Remedies in a Time of Coronavirus.
You might also check out a similar Insight Note from my partner and colleague, Juan Zuniga entitled: Memo on Force Majeure and COVID-19 which goes into great detail as to how the law in California might be interpreted in light of the current health crisis.
In fact, you can find all of the recent Insights from Rimon Law professionals on our Insights & Analysis page and once again a reminder that Rimon lawyers and legal professionals are always available to help.
– Dror Futter, Partner
Since the early 2000’s, the National Venture Capital Association has maintained model legal agreements for Series A venture financings. These forms are the templates for most of the Series A financings in the United States and are periodically updated to adjust to changes in the market and the legal/regulatory environment.
The most recent update includes additional provisions for life science investments, shareholder approval rights for ICOs and an option for alternative dispute resolution under the Delaware Rapid Arbitration Act.
Rimon Law partner Dror Futter, a member of the NVCA model forms drafting group, provides an expanded summary of the changes in the most recent update in the following client alert you can read right here: NVCA Updates Its Series A Model Legal Documents.
If you have any questions or want further information, feel free to contact Dror Futter directly and, of course, you can contact me, Joe Rosenbaum or any of the attorneys at Rimon Law with whom you regularly work.