Force Majeure Clause Risks In Australia Explained

Article Summary

A force majeure clause is a contractual mechanism that may suspend, delay, or excuse contractual obligations when extraordinary events disrupt performance, but in Australia relief is only available if the contract expressly provides for it. Whether a party can rely on force majeure depends entirely on the wording of the clause, compliance with notice and mitigation requirements, and whether the event genuinely prevents performance rather than merely increasing costs. Businesses that wrongly suspend performance risk breach of contract claims, damages, and costly disputes. Where no force majeure clause exists, parties may need to rely on the much narrower doctrine of frustration, which is difficult to establish under Australian law.