Following the upheaval caused by the COVID‑19 pandemic, numerous parties and jurisdictions globally had to confront the tricky problem of how shutdown orders impacted their private contract rights. For legal professionals dealing directly with these matters, it is of utmost importance to be well-versed with the specific nuances of such contractual difficulties. In the state of Michigan, these challenges frequently materialize in lease agreements as well — a case in point being the legal doctrine of impossibility and frustration of purpose.
In order to better comprehend these complexities, it can be beneficial to refer to our previous commentary from March 2020. This provides insightful analysis on this subject matter, which remains a strong reference even today as it sheds light on the initial responses made by legal entities to the contract disruptions caused by the pandemic.
While discussing the ‘Impossibility’ and ‘Frustration of Purpose’ doctrines, it is imperative to understand that the ability to invoke these doctrines distinctively depends on the specific language used in the contract. The doctrines generally apply to situations where the contract becomes impracticable to perform due to certain unexpected circumstances that fundamentally alter the nature of the contract.
As more businesses and corporations transition back to normalcy, or the new form of it, these doctrines could very well be brought into play once again. This underscores the need for legal professionals to stay abreast with the evolving narrative of contractual issues in the changing landscape.
To sum up, legal experts examining relevant situations in Michigan leases or around the world need a comprehensive understanding of these doctrines. This is where our previous analysis, combined with current on-the-ground insights, will prove invaluable.