Force Majeure Clauses

In the following case the commercial court had to consider (amongst other things) whether a force majeure clause was triggered by a dramatic change in market conditions. Although the case concerned an aircraft sale agreement the court's comments concerning force majeure clauses apply generally to construction contracts governed by English law.

Tandrin Aviation Holdings Limited v Aero Toy Store Llc & Anor [2010] EWHC 40

The seller entered into an agreement for the sale of a jet aircraft to a purchaser (the Agreement) for US$31.75 million. Under the Agreement, the purchaser paid a deposit of US$3 million to an escrow agent; with the balance due upon delivery of the aircraft. When the purchaser failed to take delivery of the aircraft or pay the balance, the seller terminated the Agreement and sought recovery of the deposit.