WHAT IS FORCE MAJEURE

Force Majeure means the occurrence of an event which could not have been foreseen at the time the contract was entered into, which prevents, hinders, and/or delays the performance and obligations of one or more of the affected party’s contractual obligations under the contract. Force Majeure translates literally as “superior strength” and refers to unforeseen calamities. It is defined by Black Law Dictionary as generally an event that is beyond the affected party’s reasonable control.

The court is mindful that the party relying on a Force Majeure clause must prove the facts bringing the case within the clause and that the party relying on the clause has been prevented, hindered, and/or delayed, from performing the contractual obligations by reason of the event. The non-performance shall be due to circumstances beyond the party’s control and that there were no reasonable steps that the party could have taken to avoid or mitigate the event or its consequence.

A Force Majeure clause shall be expressly spelled out in a contract and is not implied into contracts. Therefore, a Force Majeure clause can only be relied upon where it is explicitly set out in a contract and would be inapplicable where there are no provisions made in the contract for it.

A Force Majeure clause relieves one or both parties from liability to perform the respective party’s contract obligations when performance is prevented, hindered, and/or delayed by an event or circumstance beyond the party’s control. The terms of the Force Majeure clause will generally take effect provided that there is no ambiguity in the clause and subject to compliance and/or fulfilment of the pre-requisites and/or procedures as set out in the contract.

Force Majeure clause is not intended to enable a party to renege on its obligations rather it is intended to protect the affected party due to the Force Majeure event.

The contents of this posting are solely intended for General Information only. In no circumstance, the materials, opinions, views and/or contents postings shall be construed in any way whatsoever as legal advice, legal opinion, legal counsel, and/or a Lawyer-Client relationship. You shall not act or refrain to act based on information contained on this page and shall at all time seek and obtain advice from a legally qualified professional duly appointed to act for you. Reference to any publication, as well as reference to prior results obtained in a matter, do not guarantee a similar outcome on future legal matters.