Force majeure CASES
In English law, force majeure refers to contractual clauses excusing parties from performing obligations when extraordinary events beyond their control prevent performance.
The phrase “force majeure” is French and literally translates to “superior force.”
Definition and Principles
Force majeure clauses typically cover unforeseen events such as natural disasters, war, strikes, pandemics, or governmental actions, suspending or excusing contractual obligations during such events.
Key Features
- Specific Events Listed: Clearly defines circumstances qualifying as force majeure.
- Obligation Suspension: Temporarily or permanently relieves parties from duties affected by the event.
- Notification Requirements: Usually requires timely notice to invoke the clause.
Practical Importance
Effective force majeure clauses allow businesses to manage unforeseen risks, ensuring contractual fairness by allocating responsibility clearly during disruptions.
Limitations
Force majeure does not apply automatically; it must be explicitly included and clearly defined within contracts.
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A contract for transporting an oil rig contained a force majeure clause. The transporter, whose designated vessel sank, cancelled the contract despite having an alternative vessel available which was allocated to other work. The court held the cancellation was a breach of contract. Facts The plaintiffs (Lauritzen) contracted with the defendants (Wijsmuller) for the transportation of an oil rig named the ‘Dan King’ during a specified period in 1984. The defendants owned two specialised, self-propelled barges capable of this transport: ‘Super Servant One’ and ‘Super Servant Two’. The contract provided that the defendants could use either vessel. Clause 17 of
A contract to build a reservoir was halted by a government order during WWI. The contractors argued this 'frustrated' the contract, terminating it. The House of Lords agreed, finding the indefinite government intervention fundamentally altered the original contractual obligations, rendering it void. Facts In July 1914, the respondents, Dick, Kerr & Co. Ltd., entered into a contract with the appellants, the Metropolitan Water Board, to construct a reservoir and associated works at Staines within a period of six years for approximately £673,000. Work commenced but was disrupted by the outbreak of the First World War. On 21 February 1916, the
Facts In early 1914, the defendants, T. W. Allen & Sons Ltd, who were timber merchants in Hull, agreed to sell 70 standards of Finland birch timber to the plaintiffs, Blackburn Bobbin Co. Ltd. The delivery was to be free on rail at Hull. It was the normal course of business for English timber merchants like the defendants to import timber from Finland and hold it in stock. However, at the time of the contract, the defendants had no stock of Finland birch timber and intended to fulfil the contract by sourcing it directly from their supplier in Finland for
