{"id":175297,"date":"2022-08-26T05:13:08","date_gmt":"2022-08-26T04:13:08","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=175297"},"modified":"2023-03-17T06:11:48","modified_gmt":"2023-03-17T06:11:48","slug":"force-majeure-benefits","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-contracts\/force-majeure-benefits\/","title":{"rendered":"Benefits of Including A Force Majeure Clause in Your Contracts"},"content":{"rendered":"\n

If you frequently enter into contracts with another business, you may consider including force majeure clauses<\/a>. This can be a useful way of protecting your operations from unforeseen events, including, for example, COVID-19-related problems or supply chain issues. <\/p>\n\n\n\n

This article will explain what a force majeure clause is, with some examples of the normal terms of a force majeure clause. It will also outline the benefits of including a force majeure clause within your commercial contracts.<\/p>\n\n\n\n

What is a Force Majeure Clause?<\/h2>\n\n\n\n

Force majeure rules concern situations where an unforeseen event outside your control prevents you from fulfilling contractual obligations. The literal translation of ‘force majeure’ is ‘greater force’. In other words, rules on force majeure are about situations where a greater force prevents the contract\u2019s performance. <\/p>\n\n\n\n

A force majeure clause works to limit liability for breach of contractual obligations<\/a>. This applies if the reason for the breach is an event specified within the clause.\u00a0<\/p>\n\n\n\n

Example of a Force Majeure Event<\/h2>\n\n\n\n
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Suppose you have entered into a contract to deliver 10 watermelons to a business by Friday afternoon. However, because of supply chain issues resulting from COVID-19, you cannot deliver the watermelons until Saturday evening.<\/p>\n

Technically, you will be in breach of your contractual obligations, and the other party will be able to bring legal action against you. In doing so, they can seek compensation because you breached the contract. However, if you have included a force majeure clause in your contract which covers disruptions resulting from the pandemic, you will not be strictly liable for the breach.<\/p>\n<\/div>\n\n\n\n

You can see, therefore, how useful a force majeure clause can be if you cannot complete the performance of your obligation because of something outside of your control. <\/p>\n\n\n\n

Importantly, you will not be able to benefit from the law on force majeure frustration exemptions unless you have specifically outlined a force majeure clause in your contract. In addition, you must also specify the force majeure event you agree to. <\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

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