{"id":904580,"date":"2025-07-17T15:17:59","date_gmt":"2025-07-17T21:17:59","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=904580"},"modified":"2025-07-17T15:18:07","modified_gmt":"2025-07-17T21:18:07","slug":"contractual-remedies-and-principles-understanding","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/contractual-remedies-and-principles-understanding\/","title":{"rendered":"Understanding Contractual Remedies and Principles in Uncertain Times"},"content":{"rendered":"\n<p>Zachary Davis | <a href=\"https:\/\/www.stoel.com\/people\/zachary-s-davis#Insights\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Stoel Rives<\/a><\/p>\n\n\n\n<p>Since the Oval Office transition in January \u2013 and the rapid shifts in law, policy, and economic uncertainty that followed \u2013 my colleagues and I frequently field a variation of the same question: Is this a force majeure under my contract?<\/p>\n\n\n\n<p>Most often, the answer is not nearly as straightforward as the question. Providing an answer \u2013 to the extent we can \u2013 usually requires that we dig into the factual circumstances and analyze multiple interrelated <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/understand-define-key-substantive-contract-provisions\/\">contract provisions<\/a> and sometimes also arcane common law doctrine that requires wiping the dust from old law school textbooks. And, as lawyers are ought to do, whatever answer we ultimately provide almost always starts with \u201cit depends.\u201d<\/p>\n\n\n\n<p>Because uncertainty and change appear to be ongoing themes of the current political and economic landscape, having a basic understanding of contractual and legal lexicon relevant to the various doctrines that may excuse or modify a party\u2019s performance obligation is critical. Those principles may include the following (and may also hark back to memories of the COVID-19 pandemic):<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Force majeure:<\/strong>\u00a0These contract provisions \u2013 which sometimes use the term \u201cforce majeure\u201d but often do not (the American Institute of Architects forms are a good example) \u2013 typically provide relief to one or both parties based on the occurrence of certain delineated events or sometimes, more ambiguously, events that are \u201cbeyond the party\u2019s reasonable control.\u201d Historically, force majeure provisions in construction contracts provide additional time for performance to the contractor, but not additional money. This shifted somewhat post-pandemic, as force majeure became more front-of-mind during negotiations.<\/li>\n\n\n\n<li><strong>Change in law:<\/strong>\u00a0These contract provisions similarly provide relief to one or both parties based on changes in applicable law \u2013 which may or may not be a defined term \u2013 that occur after contract execution and materially affect performance. During the pandemic, parties relied on change-in-law provisions to excuse or delay performance based on stay-at-home orders and others enacted at various levels of government intended to slow the spread of the coronavirus. Changes in tariff law and other executive orders may similarly trigger change-in-law provisions, though careful analysis is typically required.<\/li>\n\n\n\n<li><strong>Impossibility or impracticability:<\/strong>\u00a0Performance may be excused under common law principles when it becomes objectively impossible or economically impractical. For instance, a landowner who has entered into an agreement to lease their building on a future date may be excused from performance if the building is destroyed by fire prior to the lease date, rendering performance impossible. The bar for excusing performance under these doctrines is typically high, and generally requires objective evidence that performance as originally anticipated is rendered impossible or economically impractical.<\/li>\n\n\n\n<li><strong>Frustration of purpose:<\/strong>\u00a0Performance may also be excused when an unexpected event occurs \u2013 the non-occurrence of which had been assumed by the parties \u2013 and frustrates the entire purpose of the contract. This typically requires evidence that the contract was formed with a specific purpose, that the occurrence of an unanticipated event frustrates that purpose, and the non-occurrence of that event was a basic assumption underlying the initial formation of the contract.<\/li>\n\n\n\n<li><strong>UCC:<\/strong>\u00a0Contracts involving the sale of goods may be subject to the Uniform Commercial Code (UCC) as adopted in the state whose law governs the contract. The UCC has codified the impracticability doctrine, which may excuse a seller\u2019s performance when certain circumstances are satisfied.<\/li>\n\n\n\n<li><strong>Anticipatory repudiation:<\/strong>\u00a0There are various other contractual principles that may in certain circumstances excuse a party from performing, including anticipatory repudiation. For instance, if party A to a contract makes a statement that it does not intend to perform, party B may then be excused from its obligation to perform.<\/li>\n<\/ul>\n\n\n\n<p>In applying these principles, courts (and arbitrators) will first and foremost study the parties\u2019 contract to see whether they agree how the risk of the event at issue would be handled prior to the dispute. If they agree, courts (and arbitrators) will typically apply the contractual remedy. But if the parties do not agree \u2013 or if there is ambiguity \u2013 then the court (or arbitrator) will look to their toolbox of other doctrines that may excuse, delay, or otherwise alter a party\u2019s obligation to perform. And, of course, the facts of the particular circumstance and various equities at stake will weigh heavy in the decision maker\u2019s consideration and ultimate decision.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Zachary Davis | Stoel Rives Since the Oval Office transition in January \u2013 and the rapid shifts in law, policy, and economic uncertainty that followed \u2013 my colleagues and I frequently field a variation of the same question: Is this a force majeure under my contract? Most often, the answer is not nearly as straightforward&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/contractual-remedies-and-principles-understanding\/\">Continue reading <span class=\"screen-reader-text\">Understanding Contractual Remedies and Principles in Uncertain Times<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9],"tags":[9895,224],"class_list":["post-904580","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-advise-consult","tag-construction-contract","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Understanding Contractual Remedies and Principles in Uncertain Times - Advise &amp; 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