Many Illinois cannabis contracts, including intellectual property licensing agreements, development agreements and supply agreements, contain force majeure clauses. Depending upon the language of these clauses, the COVID-19 pandemic may be an event that triggers these clauses and provides a defense to nonperformance of the contract. Companies that are experiencing difficulties complying with or enforcing compliance with their contracts should carefully examine their contracts to determine if a force majeure clause may excuse performance. On March 20, 2020, Illinois Governor J.B. Pritzker issued a stay at home order for all Illinois residents. (Executive Order 2020-10.) On April 30, 2020,… Continue Reading IMPACT OF COVID-19 ON ILLINOIS CANNABIS CONTRACTS — Do Force Majeure Clauses Provide A Defense To Non-Performance
Laura Burson is a partner in the Intellectual Property Practice Group in the firm's Los Angeles office.