Force Majeure Clauses in Commercial Real Estate Transactions (NY)

Summary

This practice note discusses force majeure clauses in commercial real estate contracts and leases and explains how New York courts have generally interpreted and applied them. In addition, this note examines how New York courts might be likely to interpret and apply force majeure clauses in the context of the COVID-19 pandemic, especially in light of executive orders requiring businesses to close for some period of time. It also addresses other related contractual defenses under New York law and considerations for parties as they enter into new contracts or renegotiate existing ones in the wake of the pandemic.