Oct 23, 2020

Do Inability to Perform Catchall Provisions Excuse Non-Performance Due to the COVID-19 Pandemic?

Non-performance lease

Many contracts contain an “inability to perform” provision. And these same provisions also often times provide specific excusable reasons for a party to not perform, followed by a catchall statement, setting forth “or any other cause beyond the parties reasonable control, whether or not such other cause shall be similar in nature to those hereinbefore enumerated”. With the COVID-19 pandemic still in full effect, businesses across New York City have begun to face significant economic hardships, and are thus pointing to this catchall statement, as confirmation that they are likely excused from performing their contractual duties. However, they should not… Read more

Jul 14, 2020

COVID-19 & Force Majeure – Guaranteed Minimum Royalties No More?

Plan B Apparel Industry

Is it still true, as the old saying goes, that it is better to offer no excuse than a bad one? The old adage has trouble holding up in today’s climate.  Because of the significant and detrimental impact that COVID-19 has had on the economy, and especially the apparel industry, good excuses are aplenty for licensees in the apparel licensing industry. Due to the pandemic, brand apparel licensees that have entered into license agreements with licensors to use their brand names have had unanticipated difficulty meeting the minimum sales standards and paying minimum royalties. In addition, those licensees are now… Read more