Supply Chain Disruption – Again

What You Need to Know

• Key takeaway #1

  Force majeure is not automatic under English law. There is no implied right to force majeure; the clause must exist in the contract and be interpreted strictly on its own terms. Businesses must carefully review the specific language of each clause, paying close attention to requirements around foreseeability, prevention of performance, mitigation obligations, and notice procedures, as failure to comply with any of these can extinguish the right to invoke the clause entirely.

• Key takeaway #2

  Frustration is a high bar and unlikely to provide relief in most cases. Where no force majeure clause exists or provides relief, parties may look to the doctrine of frustration, but courts set a demanding threshold; mere increased cost or delay is insufficient. As illustrated by the Tsakiroglou case, which held that the closure of the Suez Canal did not frustrate a contract because goods could still be shipped via an alternative route, frustration