Businesses need to consider their obligations under commercial contracts, and the express inclusion of a force majeure clause is useful because force majeure cannot be implied.
A force majeure clause is one that excludes one or both parties from the performance of a contract due to the occurrence of certain events or circumstances outside the reasonable control of the party or parties involved.
In the absence of a force majeure clause, businesses may seek to rely on the doctrine of frustration, and this needs to be considered carefully. However, it is really best for the contracting parties to try and negotiate a solution.
As Covid-19 (coronavirus) continues to turn the world upside down, businesses and business owners are looking closely at their commercial contracts to try and understand their obligations and liabilities. Mark Lewis, partner in Lodders’ Corporate and Commercial team explains ‘force majeure’ and ‘frustration’ and provides practical advice to help you assess your commercial contracts.