The COVID-19 pandemic profoundly disrupted the performance of business contracts around the globe. But does COVID-19 meet the requirements of a force majeure event, relieving contracting parties from their obligations? Using a sample of 621 joint venture (JV) contracts, we address this question by proposing a typology of force majeure clause specificity and identifying factors that affect the likelihood of a force majeure clause being included in a JV contract. Managerial recommendations are made for businesses and their partners dealing with disruptions in light of the COVID-19 pandemic as well as regarding the inclusion of force majeure in business contracts.
Andres Velez-Calle is an Associate Professor of International Business at Universidad EAFIT, Medellin, Colombia. He is the Colombia country representative of the Latin America and Caribbean regional chapter of the Academy of International Business (AIB-LAC). A Fulbright...
Baruch College, The City University of New York
Lauren E. Aydinliyim is an Assistant Professor of Strategic Management at the Zicklin School of Business, Baruch College, the City University of New York. Her primary research explores mechanisms through which firms ethically create and sustain human capital-based...
Santiago Sosa is an Assistant Professor (Profesor Auxiliar) of Government and Political Sciences at Universidad EAFIT, Medellin, Colombia. He is the Founder and Director of the Latin American Peace Science Society network. A Fulbright scholar, he received his PhD in...
Joshua Large is a Professor of International Relations in the Department of International Business at Universidad EAFIT, Medellin, Colombia. He received his PhD in Modern European History from The University of Chicago, an MA from Columbia University in Modern European...
by Douglas J. Miller, Cynthia Golembeski
The combination of the University of Medicine and Dentistry of New Jersey (UMDNJ) and Rutgers University in 2013 is the largest higher education merger in U.S...
by Leonardo Corbo
Shocks generate high uncertainty creating the need for firms to search for solutions to cope with the changed business landscape. One such response is the...