Contract Law

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'Force majeure' includes war; terrorism; labour disputes; compliance with law, order, rule or regulation; fire, flood and storm.

But what about breakdown of machinery, malfunction of computer equipment, delayed receipt of components or raw material? The following have been held not to be force majeure: bad weather, football matches, funerals, insufficient financial resources and miscalculations

One party to a contract may want the clause to be as wide as possible and the other as narrow as possible

What are the effects of force majeure? Is the contract terminated automatically and both parties free to make other arrangements? Or is the contract 're-written' in some way? How do the legal requirements of 'reasonableness' affect the situation? Is there a difference between standard form contracts and ones individually negotiated?

A 'force majeure' clause is just one of many clauses in any commercial contract. What about clauses governing jurisdiction, applicable law, arbitration, notices, rights of third parties, waiver, liquidated damages, general calculation of damages, interest, delay in delivery, unavailability of parts, shipping terms and conditions and so on

There are so many things that can happen / go wrong - and from time to time they do. Does your documentation say how they should be dealt with or do you want to risk spending £££ arguing about it, if it happens (and it will eventually!)

If the contract is important to you, get a solicitor to draft it / review it for you

Related topics you may find useful:

Contract litigation

Call Michael Breeze on 07900 195 195 or call 0845 270 2511 to set up an appointment