Our inaugural webinar, as part of our quarterly thought leadership series Behind the Deal: Unveiling the Complexities of Global Commodities & International Trade, discussed the concept of “force majeure” and best practice in making or defending a claim of force majeure in case of unforeseen or catastrophic circumstances.
WATCH THE WEBINAR HERE.
A force majeure event is commonly understood as a catastrophic event which prevents the performance of contractual obligations. However, force majeure is not a ‘term of art’, and the nuances of a force majeure claim depend on the express wording of the underlying contract. Close attention should be paid to every word of the relevant contractual provisions and careful thought must be given to the evidentiary burden of proving the force majeure event in question.
Best practice in dealing with force majeure provisions is therefore to consider how the contractual performance is affected in unforeseen and/or catastrophic circumstances, bearing in mind the context of each specific industry or transaction in question.
Key Takeaways:
- importance of precise force majeure wording to cover unforeseen events;
- economic hardship and climate change events may not automatically qualify as force majeure; and
- best practices for collecting evidence to support or defend force majeure claims.
Whether you are looking to mitigate risk, optimise your trade practices, or stay ahead of market developments, Behind the Deal is here to equip you with the knowledge you need to succeed.
