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Force Majeure Clauses and the Doctrine of Frustration: Flattening the Liability Curve

March 25, 2020

As both provincial and federal governments across Canada continue to impose restrictions on business and travel in an attempt to curtail the spread of COVID-19, parties to contracts, especially service or sale of goods contracts, may find it increasingly more challenging to complete their contractual obligations. In this context, it may be useful to review the legal concepts of force majeure and the common law doctrine of frustration to consider how each may apply in certain contractual relationships to excuse, suspend or limit contractual obligations or limit liability during the pandemic.

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