During times of war, when circumstances outside of
parties' control interfere with commercial obligations,
parties may turn to the doctrine of force majeure to excuse
failures to perform. This has already happened during the first
weeks of the war in Iran, when a number of companies have already
claimed force majeure for disruptions to their
businesses.1
The law of force majeure can vary in different global
jurisdictions, but the broad outlines of the doctrine under U.S.
law are mostly the same. The validity of that excuse will likely
turn on the specific triggering event, the causal link to the
failure to perform, and any reasonable efforts taken to avoid or
mitigate the effects. If the parties have a force majeure clause in
their agreement, the express terms will control and the precise
language, including any exclusions, will be of upmost importance
under U.S. law. Recent events—including COVID-19, extreme
weather and wildfires, and political policy