Because of the unprecedented business and economic disruption caused by the COVID-19 pandemic, companies are considering defenses that might excuse non-performance of a contract, such as invoking force majeure clauses, or potentially less drastic options such as renegotiating contractual terms. In some cases, companies have already begun to file suit to invoke force majeure clauses.

This article, part of Baker McKenzie and Bloomberg Tax's Special Report, discusses the transfer pricing implications of companies seeking (or not seeking) to effectively invoke force majeure clauses in intercompany agreements, as well as similar contractual considerations in the absence of a force majeure clause.

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