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ARTICLE · 14 MAY 2021

Invoking force majeure under your transport contract: Are you protected when things go off the rails?

Holding Redlich
Holding Redlich
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Holding Redlich

Holding Redlich

Holding Redlich is a large national commercial firm with offices in Melbourne, Canberra, Sydney,...

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The decision is a reminder to businesses to ensure their transport contracts protect them if things go off the rails.

AustraliaTransport

If task allocation (e.g. "I will provide you with goods/services; you will pay me for those goods/services") is the primary function of a commercial contract, risk allocation (who is liable for what if the task allocation fails) is probably a close second.

Despite these simple principles, it is surprising how often commercial contracts fail to discharge these functions due to poor or overly complex drafting.

A force majeure clause is a common feature of risk allocation in contracts. Commercial parties include them to suspend or alter their contractual obligations if performance is prevented, hindered or delayed because of something outside their control.

For ex le, a carrier of goods may be generally required to compensate the owner of the goods for transit damage and for any other losses incurred by the owner caused by the carrier's delay or failure to perform other obligations. A well-drafted force majeure clause may relieve the carrier from some or all of

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This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

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