COVID-19 and a Second Wave Means Breach of Contract Cases

Breach of contract papers with pen and gavel.

Of course, the COVID-19 pandemic has impacted everyone. Unemployment has reached record heights. The economy is in shambles. Many people are wondering how they are going to make ends meet. As the country emerges from a state of virtual shut down and people are starting to leave their homes for the first time, many people are wondering if their lives are going to get back to normal. Sadly, it looks like there might be a second wave on the horizon. This has led many parts of the country, including CA, to enter another state of shutdown. There are many businesses that cannot handle a second shutdown due to COVID-19. This has led to a rise in the number of breach of contract cases.

A breach of contract case is serious and the ramifications for all parties involved could be major. First, it is important for people to know how a breach of contract case might manifest. There are a few common ways this could arise in the business world. The first is through issues with the supplier. There are cases where the supplier might not have access to the materials it needs to fulfill his or her end of the contract. This could lead to a breach of contract case.

The other situation where this could arise is on the other end. Lots of businesses have been forced to close as a result of the pandemic. In many cases, they might have been told to close by the government. This could lead to a severe drop in the revenue stream of the business, even with the PPP. This could lead to him or her not being able to pay the supplier. This might lead to a breach of contract case in the other direction.

Now, many businesses were forced to close due to government regulations. This could throw a wrench into the breach of contract case because the party might try to claim that a force majeure was present. This is an unforeseen circumstance that leads to a breach of contract and a pandemic is usually included. It is important to note that the party still has to prove that the pandemic qualifies as a force majeure in the contract, assuming this clause is in there. It will be interesting to see how breach of contract cases play out. With a second save coming, breach of contract cases are sure to be on the rise.