Our CTO had major health issues last month that we made our client very aware of and it cause us to miss a deadline. Our client is claiming breach of contract because of the missed deadline.
Force Majeure. Neither party shall be liable in damages or have the right to terminate this Agreement for any delay or default in performing hereunder if such delay or default is caused by conditions beyond its control including, but not limited to Acts of God, Government restrictions (including the denial or cancellation of any export or other necessary license), wars, insurrections and/or any other cause beyond the reasonable control of the party whose performance is affected.
Sounds as if the CTO's illness will qualify if you can demonstrate that it was "reasonable" for you to be delayed. Moreover, unless the contract specifies that time is of the essence, a short delay for a good reason will not constitute a material breach.
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