TBJ Seeks Input from Scott Miskimon on ‘Rescinding Contract Agreements’ Due to Pandemic
In the Triangle Business Journal article “Covid delayed $10M custom yacht in NC. Now buyer is suing” Smith Anderson commercial litigation partner Scott Miskimon provided insight on how the language of contract agreements affects these type of lawsuits. The author of the legal treatise “North Carolina Contract Law,” Scott expressed that the outcome of these types of suits are “highly dependent on the language of the contract.”
According to the article, an individual sued a business located in New Bern, North Carolina over a $10.1 million custom yacht. A contract was entered into for the yacht to be delivered in early 2021, but construction was delayed because of the government shutdown caused by COVID-19.
Scott noted that in many contracts there’s a “force majeure clause” which deals with variables that happen outside of the control of the parties.
Scott recommends that business owners who are experiencing COVID interruptions and worried about the legal consequences consult an attorney about updating the language of those clauses to include pandemics.
TBJ subscribers can read the full article here.
The Litigation client alert “Contracts and COVID-19” co-authored by Scott also discusses the “force majeure clause” and offers advice on steps to take before finalizing negotiations and executing a new contract, taking action regarding an existing contract, or responding to another party who is seeking to take action to review existing contracts.
The Triangle Business Journal (TBJ) is the leading source of business news and events covering all industries in Raleigh, Durham and Chapel Hill, North Carolina and the surrounding areas. The Business Journals report on local and national issues that impact businesses and are a division of the American City Business Journals (ACBJ), the largest publisher of metropolitan business newsweeklies in the United States.