Why Should My Events Company in the UK Care About Force Majeure Clauses?

Running a business in the events industry can be unpredictable at times. Therefore, many event companies treat the bookings in their diary with a pinch of salt until closer to the scheduled date.  Naturally, most cancellations in the events industry happen because of the client pulling out, but what about situations where your company needs to? This article will explore why an events company may use force majeure clauses by looking at some of their benefits. This will help you decide if your organisation should use them within its commercial contracts.

Force Majeure Provisions

Force majeure comes from the French phrase for ‘superior force’. This makes sense in a force majeure clause, as its purpose is to protect your events company from uncontrollable circumstances.  The precise wording of these clauses will vary from contract to contract, but most will detail that those circumstances include unforeseen events outside each party’s control, including natural disasters.

For example, let us say that a commercial client signs a contract requiring your events company to arrange a party on a beach on a wooden pier. Unfortunately, two days before the event, a hurricane destroys the pier. This makes it impossible for your business to deliver the event due to the pier not existing anymore. A suitable force majeure clause should allow your company to cancel. 

However, a force majeure provision exists to protect your company when the performance of the contract would be near impossible rather than just merely difficult.  So, for example, if you arranged for a band to play on a lawn outside a mansion and the weather forecast was for heavy wind or rain, you would not be able to use a force majeure clause. This would particularly be the case if you could move the event and band inside the mansion. 

Some organisations refuse to sign commercial contracts containing force majeure clauses.  If a commercial client refuses to agree to force majeure provisions, you should weigh the pros of gaining their business against the lack of potential flexibility.

Below we consider why an events company, such as yours, should care about force majeure clauses.

Avoiding Potentially Harmful Scenarios

One of your main priorities as the owner of an events company is avoiding the risk of harm to staff and individuals. A good force majeure clause could give your organisation the flexibility to withdraw from a booking where it could cause serious harm.  

So, for example, imagine a commercial client books a powerful sound system and DJ for an ageing outdoor stage, and the week before, part of it collapses. The damage is so severe that no one can repair it before your client’s event. If there is no other secure place for the DJ to put their equipment, it is practically impossible for you to comply with your contractual obligations safely. This may be a force majeure event, so one the clause would help with.

However, if it is possible to erect a temporary stage next to the original structure, the DJ may be expected to set up there, and a force majeure event may not have occurred.

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Avoiding Potential Unlawfulness

Naturally, as a business owner, you want your business to act lawfully. Many companies sought to utilise force majeure clauses during the COVID-19 pandemic to ensure they acted lawfully when the Government banned certain types of gatherings.

Where a Government body bans the holding of certain types of events, particularly on serious public health grounds, this is likely to render the contract practically impossible.

However, Covid-19 aside, this is a very rare situation. So, for example, if seasonal flu numbers were large and the staff members had concerns about infection, this would not be sufficient to utilise a force majeure clause.

Escaping Near-Impossible Scenarios

The main objective of a force majeure provision is to enable your organisation to avoid adverse consequences for a situation outside its reasonable control.

So, for example, imagine your events company organised a vintage car for a commercial client’s Great Gatsby-themed event. However, four days before the event, it is stolen through no fault of your own. Your organisation is likely to offer a different type of vintage car, but if the commercial client insists on that particular car alone, your company could seek to use the force majeure clause. This would be because the performance of the contract is a practical impossibility through no fault of your business.

Key Takeaways

You should only use force majeure clauses in genuinely exceptional circumstances. They are invalid unless there is a genuine risk to life, likely illegality or impossibility for the affected party. They are helpful for an event company like yours, for example, for escaping near-impossible scenarios. It is wise to obtain expert legal advice before relying on force majeure events to avoid certain obligations.

If you need help drafting and utilising force majeure clauses, our experienced contract lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page. 

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