Bitesize Boilerplate: Small Clauses, Big Impact - Focus On Force Majeure

What is a force majeure clause?

A force majeure clause typically operates to give a party relief from its obligations when there is an event outside the control of that party which prevents or delays performance of those obligations. Traditionally, to qualify as force majeure such events have had to be extreme- such as natural disasters or wars. However, critically, the effect of these clauses is determined by what the clause actually says.

This alert is intended as a reminder of the importance of Force Majeure clauses and their content. Not all force majeure clauses are the same- they can be broad or narrow in scope and serve one party better than the other. Importantly, English law does not imply force majeure terms and will only apply doctrines like frustration in rare circumstances where performance is impossible, making it a far narrower route to relief.