Like all relationships, relations between business partners can become strained, at times to the point of breaking. Disputes can and do arise for a variety of reasons, from lack of communication to outright fraud. Typical claims that are raised in partnership disputes include actions for accounting, breach of contract, negligence, fraud, and breach of fiduciary duty. The remedies sought in such actions can be “legal” remedies (i.e., damages) and/or “equitable” (i.e., injunctive relief).
FORCE MAJEURE: Acts of God and other factors that may excuse potential breach of contract
Some contracts contain “Force Majeure” clauses. They provide that certain events – such as a war, a disaster, some governmental decree, or other circumstance which will make performance extremely difficult -will excuse performance temporarily as long as the event lasts. When the event concludes, then the performance (which was temporarily excused) will become due. Force Majeure clauses are common in complex commercial transactions. In the absence of such a clause, performance would be required in many difficult circumstances when performance is not impossible.