Force Majeure and COVID-19

I have already - unjustifiably I might add - heard "Force Majeure" thrown around as a means of cancelling a contract today (3.16.2020). It didn't fly today, but that could quickly change so read below and be prepared. 

The legal definition of this term is "unforeseeable circumstances that prevent someone from fulfilling a contract". There's an entire section devoted to it in every FARBAR contract - yet another reason why you should be using a FARBAR. Read it and get familiar with it because you're about to start seeing it (and possibly using it) a lot more. 

In a nutshell, in the event COVID-19 prevents a party from performing under the contract, the contract may be extended for a reasonable time. Reasonable time is 7 days after the event triggering Force Majeure no longer prevents performance under the contract, but under no event shall it be extended more than 30 days beyond Close Date. At that point, either party may terminate.

So what would trigger Force Majeure? In these strange times, it would be triggered by an act of God (COVID-19) which disrupts or delays the availability of services necessary for a parties performance - think appraisals, insurance, loan approvals, bank closings, etc. 

The remedy under Force Majeure would be for both parties to either extend the contract, or each part goes their separate ways with neither being liable to the other for any damages under the contract.  

Just be prepared to work with each party when the force is triggered, be reasonable and be flexible. Just don't be the like the nimrod today calling for it when everything in real estate is still running at full speed.