Decoding force majeure terms in contracts

Theresa mohammed bw 2018

A recent ruling has implications for the drafting and interpretation of force majeure and reasonable endeavours terms

Since restrictions were brought in to tackle the covid-19 pandemic, force majeure provisions have been thrown back into the spotlight. The concept of “an act of god”, or something which could not have been foreseen, interfering with the parties’ ability to perform their obligations under a construction or any other form of contract, has been widely discussed in terms of both when it is triggered and whether more relevant provisions should now be drafted. Now, in light of the developing global sanctions, most notably against Russia since February 2022, the topic of force majeure remains a prominent talking point in both contract negotiations and disputes on live projects.

Towards the end of last year, the Court of Appeal handed down an important decision on the application and interpretation of such provisions. The court’s findings, together with the practical implications for future and live projects, have implications for the drafting and interpretation of force majeure provisions.

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