
The "Act of God" Contract Clause That's Costing Cannabis Companies Millions
You've just signed a massive supply agreement. Then suddenly, the state changes its testing rules. Your perfectly good product now fails compliance. You can't deliver. Is your company on the hook for tens of thousands in damages? Or does that forgotten paragraph on page 27 of your contract—the "force majeure" clause—save you? For many cannabis companies, the answer has been an expensive lesson in contract language. Let's break down what you need to know.

Warning for Cannabis Businesses: Your Contracts May Not Be Enforceable
Despite many states legalizing cannabis and growing public acceptance, cannabis remains illegal at the federal level as a Schedule I controlled substance. This legal contradiction creates serious problems for cannabis businesses, especially when it comes to enforcing contracts.