With floods and fuel protests causing disruption to businesses, Sarah Townsend and Stephen Sidkin ask: are you prepared?

  • A force majeure clause applies where performance has become impossible by circumstances that were not envisaged by the parties and are outside their control
  • Clauses will provide for suspension of obligations during the period of the event. If this continues, it is usual for the clause to provide for the contract to be cancelled
  • The party suffering the event is not liable to compensate the other party
  • It is necessary for the force majeure clause to be reasonable
  • Introducing a force majeure clause guards against the possible application of frustration, which can produce an arbitrary result

    • Source

    Electrical and Mechanical Contractor

    Postscript

    Sarah Townsend is a trainee solicitor and Stephen Sidkin is a commercial law partner at City law firm Fox Williams.