Force Majeure Articles

March 25, 2020

Force Majeure Clauses under Mexican Law

Although the novel coronavirus and the COVID-19 disease it has spawned has been declared a world-wide pandemic by the World Health Organization (“WHO”), from a legal standpoint in Mexico the current pandemic does not appear to justify a breach of contract under the theory of force majeure or as an Act of God. In our view, this will be the case until Mexico’s federal government, or individual state governments, declares which specific restrictive measures or prohibitions would directly impact a contracting party’s ability to perform its contractual obligations and/or be completely beyond the control of such party. Currently in Mexico, certain states have issued various restrictions ordering the closing or limiting of activities in specific business sectors of the economy. … read more

March 20, 2020

COVID-19 and Applicability of Force Majeure Clauses under Mexican Law

On March 11, 2020, the World Health Organization (“WHO”) declared the spread of the virus known scientifically as COVID-19 as a pandemic, which resulted in numerous governments taking a series of extraordinary measures that have affected the movement of people and goods. In many cases, these restrictions and difficulties may cause a breach of contract or otherwise complicate a contracting party’s ability to perform and/or comply with its contractual obligations. It is in these cases that force majeure clauses can come into play. Below is a general description of potential legal consequences of this type of case in contractual relationships governed by Mexican law. The declaration of COVID-19 as a pandemic triggered questions regarding potential breaches of contract and the … read more