News & Analysis as of

Contract Terms Force Majeure Clause

Braumiller Law Group, PLLC

Hot Topics in International Trade - August 2024 - Using a Contract Review Checklist for Commercial International Trade Contracts

In the complex world of commercial international trade, contracts serve as the foundation for successful transactions. A well-prepared contract review checklist provides a basis for lawyers to ensure that all necessary terms...more

BCLP

RTI Ltd v MUR Shipping BV: Certainty v Commerciality

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In this Insight, first published in PLC, James Clarke, Richard Shaw and Anna Blest consider the Supreme Court's decision in RTI Ltd v MUR Shipping BV [2024] UKSC 18, which confirmed that a party's obligation to exercise...more

Dechert LLP

Force Majeure: When Performance Is Not Enough

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Parties affected by a force majeure event should exercise "reasonable endeavours" to overcome such an event, even if the contract does not clearly state so. However, when exercising reasonable endeavours, parties do not...more

Akin Gump Strauss Hauer & Feld LLP

Contract Is (Still) King - Update on the UK Supreme Court’s Decision in RTI Ltd v MUR Shipping BV

Key Takeaways - In the words of the UK Supreme Court, the decision in RTI v MUR raised “fundamental points of principle” that could, in theory, apply to all force majeure clauses. Our top three takeaways are: Unlike the...more

Mayer Brown

Do reasonable endeavours require accepting non-contractual performance to reach a reasonable outcome?

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In the UK Supreme Court's judgment in RTI Ltd v MUR Shipping BV [2024] UKSC 18, which was handed down last week, it considered what obligations the words “reasonable endeavours” placed on a party, in the context of a force...more

Hogan Lovells

UK Supreme Court preserves principles of contractual interpretation in RTI Ltd v MUR Shipping BV

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The UK Supreme Court has unanimously decided that, in the absence of express wording, parties seeking to rely on a force majeure clause with a reasonable endeavours proviso are not required to accept offers of non-contractual...more

Oliva Gibbs LLP

The Force (Majeure) May Not Be So Strong in This One

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In a recent lawsuit, an oil producer claims significant monthly losses due to a forced pipeline shutdown, alleging the pipeline company violated their contract by failing to adhere to U.S. laws and ensure operational...more

Arnall Golden Gregory LLP

Lizzo, WME, Virgin Fest, and the Power of a Force Majeure Clause: A $5 Million Cautionary Tale

In December 2019, promoters of Virgin Fest Los Angeles (“Virgin Fest”) announced their intention to host a two-day music festival in Los Angeles, California. The inaugural event was scheduled for June 6 and 7, 2020. The...more

Warner Norcross + Judd

Tragic Francis Scott Key Bridge Collapse Could Lead to Supply Disruptions

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Over the last several years, the automotive industry has grown accustomed to various supply disruptions, from COVID-19 shutdowns and material shortages to port congestions. The tragic collapse of the Francis Scott Key Bridge...more

Allen Matkins

Loss Of $6 Million In Deposits Is No Forfeiture

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VFLA Eventco, LLC v. William Morris Endeavor Entertainment, LLC, 2024 WL (March 6, 2024) involved the loss of $6 million in deposits that had been paid to secure the performances of various artists at a two day musical...more

Troutman Pepper

Energy Contracting and the Hidden Power of the Force Majeure Clause - Energy Law Insights

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The energy sector is currently undergoing seismic change and with that change comes tremendous opportunity. Our energy video series, which features nationally recognized Troutman Pepper partners as they discuss a vast array...more

King & Spalding

Saudi Arabia’s New Civil Transactions Regulation

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The Civil Transactions Regulation (the “CTR”) was promulgated on 18 June 2023 and entered into force on 16 December 2023. The CTR was conceived as one of four key reforms announced in February 2021 to enhance the general...more

Morrison & Foerster LLP

Drafters Beware: Key 2023 English High Court Cases That May Affect Your Commercial Contracts in 2024 and Beyond…

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Although the general principles of English contractual law did not see a dramatic overhaul in 2023, parties to commercial contracts should still be aware of a number of cases in 2023 that tweaked, clarified or confirmed areas...more

Patton Sullivan Brodehl LLP

Court Rejects Commercial Tenant’s Argument for Relief From Rent Due to “Temporary Frustration of Purpose” During Pandemic

Earlier this year, Money and Dirt covered a then recent case, West Pueblo Partners, LLC v. Stone Brewing Co., LLC, which was one of the first California cases dealing with the aftermath of the Covid-19 pandemic and the legal...more

Stoel Rives -  Ahead of Schedule

Follow-Up: Should Attorneys Use Artificial Intelligence to Draft a Construction Contract?

Over this past summer, our colleague Mario R. Nicholas penned an article for the Daily Journal of Commerce entitled “Can Artificial Intelligence Be Trusted to Draft a Construction Contract?”  It is a great read, and we borrow...more

Barnea Jaffa Lande & Co.

Doing Business in Israel: Effects of War in Israel on International Companies

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Operation Swords of Iron constitutes a state of emergency in Israel unlike any other in past decades, with at least 1,400 citizens killed and some 300,000 reservists called up for duty. This state of emergency is being felt...more

Gray Reed

Winter Storm Uri – No Summary Judgment This Time

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Unit Petroleum Company v. Koch Energy Services, LLC is another force majeure case arising out of winter storm Uri. Unlike a similar case, summary judgment was denied because, said the United States District Court, The word...more

Lowndes

Hurricane Idalia: Take a Hard Look at the Force Majeure Clauses and Your Business Risks

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With Hurricane Idalia about to cross Florida, people are naturally focused on preparations and the potential adverse impacts that it will have. For businesses, that should include analysis of contractual obligations that...more

Venable LLP

Construction Industry Concerns Resulting from Dangerous Air Infiltrating into New York Region

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The New York region has experienced some of the worst air quality in the world as a result of the recent Canadian wildfires that continue to rage out of control, something weather forecasters believe will become more common...more

Quarles & Brady LLP

Supply Chain Survival Series: Impracticability, Impossibility and Frustration of Purpose (Article #10)

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In our previous article, we discussed the concept of force majeure, which can excuse parties from performing their contractual obligations in certain circumstances. As explained in that article, force majeure is a contractual...more

Haight Brown & Bonesteel LLP

To pay or not to pay: knowing when you can and can’t rely on a Force Majeure

What is one way to prepare for the unexpected? A force majeure clause. The COVID-19 pandemic is the latest historical event that could neither be anticipated nor controlled by contracting parties at the time of contracting....more

Blake, Cassels & Graydon LLP

Ingredients for Alleviating Supply-Chain Woes in the Food Sector

With the continued uncertainty in geopolitics, an increased focus on environmental, social and governance (ESG) concerns and priorities, and the aftereffects of the pandemic, there has been a massive shift in the traditional...more

Bradley Arant Boult Cummings LLP

Contextual “Construction” of Force Majeure Clauses

The Texas Supreme Court recently provided new guidance in interpreting force majeure language in an oil and gas drilling dispute. In Point Energy Partners Permian, LLC v. MRC Permian Company, the court held that the oil and...more

Haight Brown & Bonesteel LLP

California Appeals Court Confirms the COVID-19 Force Majeure Event Did Not Excuse Contract Performance Merely Because It Became...

In West Pueblo Partners, LLC v. Stone Brewing Co., LLC, (2023 WL 3151827), the California Court of Appeal, First Appellate District, affirmed summary judgment on the basis that the COVID-19 pandemic force majeure event did...more

Quarles & Brady LLP

Supply Chain Survival Series: Force Majeure (Article #9)

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In our previous article, we discussed anticipatory repudiation and demands for adequate assurances—legal concepts that may arise when a party to a contract expects that its counterparty may not perform its end of the bargain....more

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