Clifford Chance
Coronavirus: Requests for Adequate Assurance Under New York Law
April 7, 2020
In the current coronavirus crisis, many businesses are evaluating options for terminating or suspending performance under their contracts. The right to terminate or suspend may be available under the contract (e.g., a force majeure clause), but there are also extra-contractual options under New York law for terminating or suspending performance when a contractual counterparty fails to provide reasonable assurance that the contract will be performed. Businesses may be able to protect themselves from the risk of repudiation or breach by invoking this legal doctrine in appropriate circumstances.
