What is a Force majeure clause

Contractual force majeure (FM) clauses contain provisions which, where specified types of unforeseen circumstances beyond a contractual party’s control prevent performance:

1. •

   excuse the affected party from performing in whole or in part, or allow it to suspend performance of, its contractual obligations

2. •

   allow the affected party a time extension in respect of time bound contractual obligations

3. •

   in many cases, provide for termination of the contract where there is prolonged force majeure preventing performance

The vast majority of international business agreements include FM clauses in their provisions. However, there is no universal definition of ‘force majeure’ as such or of the specific circumstances which give rise to it, since different jurisdictions adopt different approaches. While civil law countries often include express definition of force majeure in their national codes, there is no doctrine of force majeure under the laws of England and Wales. Therefore, in its absence commercial parties can only rely on the doctrine of frustration of contract, which is based upon a certain event making