Force majeure

Understand the idea

A party invoking a clause must connect the event to its inability to perform and satisfy the clause's tests. These may include lack of reasonable control, unforeseeability and inability to avoid or overcome the effects. Notice and mitigation requirements can matter. Relief might suspend affected performance temporarily or allow termination after defined conditions; it does not necessarily cancel the whole contract or excuse earlier breaches.

An example

Imagine a severe storm closing the only port through which a supplier can deliver contracted equipment. A relevant clause may provide temporary relief if the supplier gives the required notice and shows that reasonable alternatives cannot overcome the disruption. If another permitted route remains reasonably available, the outcome may differ. This hypothetical illustrates the questions to examine rather than deciding a real contractual dispute.

Sources

• International Chamber of Commerce: Force Majeure and Hardship Clauses

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