Force majeure

Force majeure

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This precedent has been authored for by Dr. Gordon Hughes, Principal, Davies Collison Cave Law.

Introductory note

Both contracting parties tend to seek the comfort of a “force majeure” clause, exempting them from the obligation to complete the contract if they are prevented from doing so by events beyond their reasonable control. When drafting such a clause, care should be taken in defining what constitutes a “force majeure event” as the term is not recognised by the common law (as opposed to the doctrine of frustration). Consideration should also be given to a party’s right to terminate if a delay attributable to force majeure continues for a lengthy period, or alternatively to source affected goods or services from a third party in the interim period.