Force Majeure Clause

News & Analysis as of

Zika and the Hospitality Employer: Evolving Concerns as the Virus Comes to the U.S.

We’ve previously answered some basic questions that employers may have when their employees work in or visit locations where exposure to Zika virus is a risk. With recent news concerning the first cases of transmission of the...more

The principal legal effects of Brexit on commercial contracts in Morocco

Financial analysts remain uncertain about the potential effects on the global economy of the United Kingdom’s anticipated exit from the European Union (Brexit). ...more

UK Litigation in a Post Brexit World

As in so many other areas, the effect of the decision to leave the European Union in the referendum on 23 June 2016 on litigation in England and Wales in still highly uncertain. There are a number of issues that the UK...more

Brexit Update: What’s Next for the Global Marketplace

In Depth - UK Withdrawal Process - The United Kingdom will continue to be an EU member until procedures are completed for exiting the European Union, which is likely to be a long process. Under EU Treaty rules,...more

Client Alert: Brexit – What Silicon Valley Needs to Know

The vote of the UK Electorate to leave the EU has politicians, economists, lawyers and commentators from all sectors speculating on what will happen next and over exactly what period. While it is unlikely that there will be a...more

The Brexit

The result of yesterday's vote of the UK electorate is in favour of the UK leaving the European Union. This is merely the first step in a very long road (up to two years) which begins with the UK serving notice of its...more

The UK has voted to leave the EU: What now?

The British public have voted that the UK should leave the EU. The EU Referendum vote (the Leave Vote) does not by itself result in an automatic UK exit from the EU. The EU Treaty provides for a framework for a...more

Brexit: Implications for Commercial Contracts

Brexit, and the possibility of a Britain which is no longer part of the EU, raise many implications for commercial contracts. Like other supervening events, it is unlikely that Brexit was contemplated by the parties when...more

Long-term supply (and off-take) agreements: some recent themes

This Client Alert seeks to highlight certain recurring issues and themes arising in the context of long-term commodity supply and off-take agreements. It draws upon the recent collective experience of our lawyers as well as...more

Consideration of Force Majeure in Construction Contracts

Before entering into a construction contract, consider how force majeure events are evolving in today’s world. Have you looked the risk of climate change causing more frequent unusual or severe weather? What about the...more

Give your dough to the baker even if he will eat half of your bread!

As dispute lawyers we often deal with contracts that result in unintended consequences because they have not been drafted by lawyers expert in the chosen governing law of the contract. While many legal systems share...more

Potential Commercial Litigation Consequences of 'Brexit'

With the referendum for Britain potentially leaving the European Union (“Brexit”) fast approaching on 23 June 2016, a “leave” vote could have far-reaching consequences for commercial litigation in the courts of England and...more

Weathering the (Winter) Storm

Extreme winter weather can cause serious problems. For children, winter weather often means snow days and an escape from the confines of the classroom. For manufacturers, heavy snow and ice can mean absent workers, power...more

Undead as a Service: Tips to Help Ensure Your IT Agreements Can Withstand a Zombie Apocalypse

Do the undead read the small print? In our experience, zombies are typically more concerned with fresh brains than with forum selection, but Amazon Web Services (AWS) has helpfully updated its AWS Service Terms for anyone who...more

Top 2016 Litigation Issues Facing the Auto Supply Chain

Nobody likes a fight. Well, almost nobody. Trial lawyers, boxers, and MMA fighters might be the only ones. But, in business, the occasional fight is pretty much inevitable. What fights do we foresee for those in the auto...more

EU Sanctions: Commercial and Contract Risks

Sanctions programmes are established and developed as a political response to international relations developments; yet they impose significant obligations on commercial entities in terms of compliance. They may interfere...more

Iran Nuclear Deal Clears Senate Obstacle, But Will “Snap-Back” Bite?

On Thursday, September 10, 2015, U.S. Senate Democrats cleared a hurdle for the proposed Iran nuclear agreement by blocking a Senate resolution that would have rejected the deal. The result, in which Senate Republicans...more

Legal Considerations in Businesses’ Disaster Planning

In the last decade, Disaster Recovery (“DR”) and Business Continuity Planning (“BCP”) have become “hot” topics, as companies attempt to deal with disasters and the associated business risks. “Force majeure” is a legal concept...more

New York Fracking Ban: Insult Followed by Injury

Political actions have consequences. A force majeure clause in New York oil and gas leases does not modify the primary term of the habendum clause and the leases are not extended because of the state ban “moratorium” on...more

FERC Issues Order Accepting PJM Capacity Performance Proposal

FERC approves PJM’s significant capacity market changes in an effort to ensure reliability in the region. On June 9, 2015, the Federal Energy Regulatory Commission (FERC or the Commission) issued an order (the CP...more

Recent Court of Appeals Decision Guts Force Majeure Clauses in Most Oil and Gas Leases

On March 31, 2015, the New York State Court of Appeals issued an opinion in the case of Walter R. Beardslee, et al. v. Inflection Energy, LLC, et al., interpreting the applicability of force majeure clauses to extend the...more

West Coast Ports Labor Turmoil - Time to Dust Off That Overlooked Force Majeure Clause?

The simmering labor dispute between the International Longshoreman and Warehouse Union and the Pacific Maritime Association, which represents West Coast port owners, has begun to capture the attention of businesses that have...more

Owners’ demurrage claim succeeds where Charterers fail to bring themselves within a force majeure clause

A vessel was chartered for one voyage from “1-2 load berth chop always afloat Santander” to a port in the UK. Charterers ordered the vessel to load bulk bauxite at a berth adjacent to one where cars were waiting to be loaded....more

Paris Energy Series No. 9: Expecting the Unexpected: The Force Majeure Clause

In August 2014, steel and mining company ArcelorMittal announced that it was suspending an expansion project to triple its iron ore production in Liberia due to the Ebola epidemic in West Africa. A few days earlier, Brazilian...more

Force Majeure Clauses: An "Out" for Suppliers Facing Shortages and Supply Chain Disruptions From West Coast Labor Dispute

With the ongoing West Coast labor dispute and increasing port congestion causing gridlock, suppliers should look to their contracts to determine whether they have the right to declare force majeure with their customers in the...more

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