{"id":3809,"date":"2026-03-10T15:19:41","date_gmt":"2026-03-10T15:19:41","guid":{"rendered":"https:\/\/itlawco.com\/?p=3809"},"modified":"2026-03-10T15:32:50","modified_gmt":"2026-03-10T15:32:50","slug":"force-majeure-in-commercial-contracts","status":"publish","type":"post","link":"https:\/\/itlawco.com\/fr\/force-majeure-in-commercial-contracts\/","title":{"rendered":"Force majeure in commercial contracts"},"content":{"rendered":"\n\t\t<div id=\"fws_6aa1551533cf1\"  data-column-margin=\"default\" data-midnight=\"dark\"  class=\"wpb_row vc_row-fluid vc_row\"  style=\"padding-top: 0px; padding-bottom: 0px; \"><div class=\"row-bg-wrap\" data-bg-animation=\"none\" data-bg-animation-delay=\"\" data-bg-overlay=\"false\"><div class=\"inner-wrap row-bg-layer\" ><div class=\"row-bg viewport-desktop\"  style=\"\"><\/div><\/div><\/div><div class=\"row_col_wrap_12 col span_12 dark left\">\n\t<div  class=\"vc_col-sm-12 wpb_column column_container vc_column_container col no-extra-padding inherit_tablet inherit_phone \"  data-padding-pos=\"all\" data-has-bg-color=\"false\" data-bg-color=\"\" data-bg-opacity=\"1\" data-animation=\"\" data-delay=\"0\" >\n\t\t<div class=\"vc_column-inner\" >\n\t\t\t<div class=\"wpb_wrapper\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element \" >\n\t<p>Most force majeure clauses fail when they&#8217;re needed most. Not because the event doesn&#8217;t qualify, but because the clause was poorly drafted, the notice was late, or nobody built an evidentiary file. COVID-19, <a href=\"https:\/\/www.techtarget.com\/whatis\/feature\/Explaining-the-largest-IT-outage-in-history-and-whats-next\">the CrowdStrike outage<\/a>, <a href=\"https:\/\/www.euronews.com\/2026\/03\/04\/qatarenergy-declares-force-majeure-as-attacks-halt-liquid-natural-gas-production\">the QatarEnergy declarations<\/a>, <a href=\"https:\/\/atlasinstitute.org\/the-red-sea-shipping-crisis-2024-2025-houthi-attacks-and-global-trade-disruption\/\">the Red Sea crisis<\/a>: each one exposed the same gap. The clause that seemed fine at signing became useless under real pressure. This article explains what every force majeure clause must contain, how courts actually interpret them, and what separates the provisions that hold from the ones that don&#8217;t.<\/p>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element \" >\n\t<h2>Key questions this article answers<\/h2>\n<ol>\n<li>What are the essential components every force majeure clause must include to be enforceable?<\/li>\n<li>What is the difference between force majeure and the common-law doctrines of frustration and impossibility?<\/li>\n<li>How should force majeure clauses be tailored for construction, energy, technology, maritime, and manufacturing contracts?<\/li>\n<li>What drafting techniques defeat restrictive judicial canons like eiusdem generis?<\/li>\n<li>How do you invoke force majeure correctly and what procedural failures will defeat an otherwise valid claim?<br \/>\n6. What do COVID-19, the CrowdStrike outage, the QatarEnergy declarations, and the Suez Canal blockage teach us about modern force majeure drafting?<\/li>\n<\/ol>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element \" >\n\t<h2>Who this article is for<\/h2>\n<p>Written for lawyers and in-house counsel drafting commercial contracts; procurement and contract managers negotiating cross-border deals; risk officers mapping exposure to geopolitical and technology disruption; and executives who want to understand what the force majeure clause in their agreements actually does. Covers English, US, and South African law, plus civil law frameworks and key instruments: ICC, UNIDROIT, FIDIC, BIMCO, UCC, CISG.<\/p>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element \" >\n\t<h2>The doctrinal foundation<\/h2>\n<h3>The tension at the heart of every contract<\/h3>\n<p>Contracts rest on a simple principle: <em>pacta sunt servanda<\/em> \u2014 agreements must be honoured. Force majeure is the exception. It says: when something truly extraordinary happens, and it prevents you from performing through no fault of your own, the law won&#8217;t hold you to your promise. The clause translates that principle into a specific, negotiated allocation of risk.<\/p>\n<p>Note what it isn&#8217;t. Force majeure is not an escape route from an unprofitable deal. It&#8217;s not a shield for poor planning. Courts read it narrowly because that&#8217;s how the parties wrote it, and because the alternative would make contracts unenforceable every time circumstances shifted.<\/p>\n<h3>The common law and civil law divide<\/h3>\n<p>In common law jurisdictions\u2014England, the US, Australia, South Africa\u2014force majeure doesn\u2019t exist in the general law. There&#8217;s no inherent right to be excused from a contract because something went wrong. Without an express clause, you&#8217;re left with the much narrower doctrines of frustration (England), impossibility (US), or supervening impossibility (South Africa). These are blunt instruments: they terminate the contract automatically, and they apply in far fewer situations than most people expect.<\/p>\n<p>However, there\u2019s a trap here most drafters miss. A badly written force majeure clause doesn\u2019t just fail to help you; it actively makes things worse. Courts apply the clause first. Frustration and impossibility only come into play if the clause doesn&#8217;t cover the event. So a clause that triggers but then fails on procedural grounds\u2014say, because notice was late\u2014can leave you worse off than if you\u2019d written no clause at all.<\/p>\n<p>Alternatively, civil law systems are different. France, Germany, and China all codify force majeure by statute. A contractual clause can refine the statutory framework, but even without one, courts have a default regime. This gives civil law drafters more flexibility, but also less control, since mandatory statutory rules may constrain what the parties can agree.<\/p>\n<p>Governing law is not a formality. It determines how much work the clause has to do and how courts will interpret it. Choose it deliberately.<\/p>\n<blockquote><p>\nA force majeure clause is a contractual allocation of risk for supervening events, not a general escape hatch from an unprofitable bargain. Courts read them narrowly, and with good reason.\n<\/p><\/blockquote>\n<h3>From absolute impossibility to commercial impracticability<\/h3>\n<p>Traditional common law demanded physical impossibility before excusing performance. The US moved on from this with UCC Section 2-615, which allows relief when performance becomes \u201cimpracticable\u201d, so excessively burdensome that it defeats the contract\u2019s basic assumptions.<\/p>\n<p>This matters for one specific drafting reason: \u201cprevents\u201d, \u201chinders\u201d, and \u201cimpedes\u201d are not synonyms. They impose different thresholds.<\/p>\n<ul>\n<li>\u201cPrevents\u201d means impossible.<\/li>\n<li>\u201cHinders\u201d means seriously obstructed.<\/li>\n<li>\u201cImpedes\u201d is softer still.<\/li>\n<\/ul>\n<p>The word you choose determines who wins a borderline claim and courts won&#8217;t rewrite your choice in your favour.<\/p>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element \" >\n\t<h2>Core components: The must-haves<\/h2>\n<p>A professional-grade force majeure clause has eight structural components. Each one must be drafted explicitly, because courts won&#8217;t invent anything you leave out.<\/p>\n<h3>C1 | The definition of triggering events<\/h3>\n<p>The triggering event definition is where the clause either does its job or doesn\u2019t. Three approaches exist.<\/p>\n<ul>\n<li><strong>Exhaustive enumeration<\/strong> \u2014 listing every covered event \u2014 is precise but full of gaps. No drafter is omniscient. Worse, courts apply <em>expressio unius<\/em>: if it\u2019s not listed, it was intentionally excluded. A clause covering \u201cfire, flood, earthquake, and war\u201d gives you nothing when a government shuts your industry down.<\/li>\n<li><strong>A general catch-all alone<\/strong> \u2014 \u201cany event beyond reasonable control\u201d \u2014 creates uncertainty. Strict jurisdictions like New York may find it too vague.<\/li>\n<li><strong>The hybrid approach<\/strong> \u2014 a non-exhaustive illustrative list plus a broad qualifier \u2014 is now the gold standard. The list signals what was contemplated. The qualifier handles what couldn&#8217;t be foreseen. You need both.<\/li>\n<\/ul>\n<p>Post-2020, contracts must explicitly address: pandemics and public health emergencies; government-mandated closures; cyberattacks and infrastructure failures; sanctions and trade embargoes; geopolitical conflict; and climate events benchmarked against historical averages. Each of these has been litigated. Each has failed against boilerplate that didn&#8217;t name it.<\/p>\n<h4><em>Eiusdem generis<\/em> and how to defeat it<\/h4>\n<p><em>Eiusdem generis<\/em>: where a general term follows a specific list, courts read it to cover only events similar to those listed. A clause listing \u201cfire, flood, and storm\u201d followed by \u201cor any other event\u201d may not cover a government export ban, because bans aren\u2019t natural disasters.<\/p>\n<p>To defeat this canon, include one of these:<\/p>\n<table width=\"624\">\n<tbody>\n<tr>\n<td width=\"200\"><strong>Expansive formulation<\/strong><\/td>\n<td width=\"424\">\u201c&#8230;whether or not similar to the events listed above&#8230;\u201d<\/td>\n<\/tr>\n<tr>\n<td width=\"200\"><strong>Unlimited formulation<\/strong><\/td>\n<td width=\"424\">\u201c&#8230;including, without limitation, the following events&#8230;\u201d<\/td>\n<\/tr>\n<tr>\n<td width=\"200\"><strong>Canon exclusion<\/strong><\/td>\n<td width=\"424\">\u201cThe doctrine of<em> eiusdem generis<\/em> shall not be applied to the interpretation of this Clause.\u201d<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3>C2 | The causation standard<\/h3>\n<p>Defining the event isn\u2019t enough. The clause must also define how much that event must affect performance before relief kicks in. This is the element most often missing from boilerplate.<\/p>\n<p>It\u2019s not enough that a force majeure event occurred. You have to prove it actually caused the non-performance. Courts consistently reject claims where performance was technically possible but commercially undesirable. In multi-cause situations\u2014where the FM event is one of several contributing factors\u2014English courts apply the \u201cbut for\u201d test: you must show you would have performed but for the event. Pre-existing financial problems, poor planning, or supply issues on your side will break the causal chain.<\/p>\n<p>The choice of verb determines everything:<\/p>\n<table width=\"624\">\n<tbody>\n<tr>\n<td width=\"200\"><strong>Prevents<\/strong><\/td>\n<td width=\"424\">Highest threshold. Performance must be physically or legally impossible.<\/td>\n<\/tr>\n<tr>\n<td width=\"200\"><strong>Hinders \/ Impedes<\/strong><\/td>\n<td width=\"424\">Moderate threshold. Performance significantly obstructed but not rendered impossible.<\/td>\n<\/tr>\n<tr>\n<td width=\"200\"><strong>Delays<\/strong><\/td>\n<td width=\"424\">Lowest threshold. Covers timing disruption; ultimate performance obligation remains.<\/td>\n<\/tr>\n<tr>\n<td width=\"200\"><strong>Makes impracticable<\/strong><\/td>\n<td width=\"424\">UCC standard. Performance so excessively burdensome as to defeat basic assumptions.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3>C3 | The foreseeability requirement and how to override it<\/h3>\n<p>Courts often read an unforeseeability requirement into force majeure clauses even when the drafting doesn\u2019t say so. The logic: if you could see it coming and signed anyway, you took the risk. A seasonal hurricane in Florida, a South African power outage during the Eskom era: these may fail unforeseeability scrutiny under a generic clause.<\/p>\n<p>There\u2019s a paradox worth knowing. Some courts have held that naming a specific risk in the clause proves it was foreseeable which then undermines the clause\u2019s general unforeseeability requirement. Specificity can work against you.<\/p>\n<p>The clean fix: include \u201cwhether or not foreseeable at the date of this agreement\u201d. This removes the question from judicial interpretation and allocates the risk consciously, not accidentally.<\/p>\n<h3>C4 | Notice requirements<\/h3>\n<p>Notice is the procedural gateway. Unlike frustration, which operates automatically, force majeure requires you to act. In many contracts\u2014 specially energy and maritime\u2014late notice is an absolute bar: you get nothing, regardless of whether the event qualifies. In others, relief runs only from the date notice is received. Either way, late notice is one of the most common reasons valid claims fail.<\/p>\n<p>A proper notice provision must specify:<\/p>\n<ul>\n<li><strong>Timeframe<\/strong> \u2014 24\u201372 hours in energy and maritime; up to 14 days under FIDIC in construction.<\/li>\n<li><strong>Form<\/strong> \u2014 written, via a specified method. Casual emails and calls get contested.<\/li>\n<li><strong>Content<\/strong> \u2014 the event, its expected duration, the affected obligations, and what you\u2019re doing to mitigate.<\/li>\n<li><strong>Consequences<\/strong> \u2014 does late notice bar all relief, or just reduce it?<\/li>\n<li><strong>Ongoing updates<\/strong> \u2014 a requirement to report regularly throughout the event, not just at the start.<\/li>\n<\/ul>\n<p>That last one\u2014continuous updates\u2014is missing from most boilerplate. A single initial notice creates no obligation to keep the other side informed. Regular updates let both parties plan, mitigate, and build the evidentiary record that will matter later.<\/p>\n<h3>C5 | The duty to mitigate<\/h3>\n<p>Force majeure protects the genuinely blameless. It doesn\u2019t excuse inaction. Every well-drafted clause requires the affected party to take commercially reasonable steps to overcome the event (e.g., alternative sourcing, rerouting, business continuity plans) and to resume as soon as practicable once it ends.<\/p>\n<p>The standard is \u201ccommercially reasonable\u201d, not \u201call possible\u201d. Mitigation should be proportionate to the scale of the obligation.<\/p>\n<p>One important limit, established by the UK Supreme Court in <a href=\"https:\/\/www.supremecourt.uk\/cases\/uksc-2022-0172\">MUR Shipping v. RTI<\/a>: you\u2019re not required to accept non-contractual performance to mitigate. The court held a shipowner wasn\u2019t obliged to accept euro instead of the contractually specified US dollars, even though the currency switch would have worked around the sanctions triggering the force majeure event. Mitigation is mandatory. Rewriting your own contract to mitigate is not.<\/p>\n<h3>C6 | Consequences, duration, and termination<\/h3>\n<p>Most force majeure clauses spend all their energy defining what qualifies and almost nothing on what happens next. That\u2019s backwards. The consequences section is where both parties will be reading the clause under maximum stress.<\/p>\n<p>Specify explicitly:<\/p>\n<ul>\n<li><strong>Suspension or extinguishment<\/strong> \u2014 suspension is almost always the right answer in commercial contracts.<\/li>\n<li><strong>What happens to payment<\/strong> \u2014 obligations to pay for goods or services already received usually survive a force majeure event and should be carved out.<\/li>\n<li><strong>Bilateral vs unilateral suspension<\/strong> \u2014 does the non-affected party\u2019s performance also pause?<\/li>\n<li><strong>The long-stop date<\/strong> \u2014 the point after which either or both parties can terminate. Typically 30\u2013180 days. Without it, contracts can be stranded indefinitely.<\/li>\n<li><strong>Termination consequences<\/strong> \u2014 return of prepayments, handover of work-in-progress, settlement of costs.<\/li>\n<li><strong>Unjust enrichment restitution<\/strong> \u2014 if partial deliveries were made before the event was declared, the clause should require compensation for value received. Without this, the performing party is penalised for partial compliance.<\/li>\n<\/ul>\n<blockquote><p>\nThe long-stop termination right is not optional. Without it, a temporary disruption can harden into a permanent impasse.\n<\/p><\/blockquote>\n<h3>C7 | The subcontractor and supplier double test<\/h3>\n<p>What happens when the disruption starts two tiers up the supply chain? The contracting party may be willing and able to perform, but physically can\u2019t because a supplier was hit by a qualifying event. Most clauses don\u2019t address this.<\/p>\n<p>The ICC model establishes what practitioners call the \u201cdouble test\u201d. To invoke force majeure based on a subcontractor\u2019s failure, you must prove two things: (1) that your own non-performance satisfies the force majeure conditions, and (2) that your subcontractor\u2019s failure independently satisfies those same conditions. Pointing to your supplier\u2019s default as the cause of yours requires proving the supplier was also genuinely force-majeured. Simply establishing that they let you down is not enough.<\/p>\n<p>Address this explicitly in supply agreements: whether subcontractor failures are covered at all; what evidence is required to establish the subcontractor\u2019s qualifying impediment; and whether alternative sourcing must be attempted before invoking the clause.<\/p>\n<h3>C8 | The duty to resume performance<\/h3>\n<p>Force majeure suspends obligations; it doesn\u2019t end them. Once the impediment ceases, performance must resume. But this is only enforceable if the clause says so. Without an explicit resumption provision, a party that delays resuming after the event ends may argue it remains excused because no clear contractual trigger fired.<\/p>\n<p>The clause should state: performance resumes as soon as reasonably practicable after the event ceases; the affected party must notify the counterparty when the impediment ends; and failure to resume at that point is a new and independent breach, not a continuation of the original excused non-performance.<\/p>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element \" >\n\t<h2>Advanced risk-allocation tools<\/h2>\n<p>The eight components above are the legally necessary minimum. These additional provisions are what turn a standard clause into a genuinely resilient one.<\/p>\n<h3>Step-in rights<\/h3>\n<p>In critical infrastructure, essential services, and PPPs, the non-affected party may need to take over performance during a force majeure period\u2014directly or through a third party\u2014without triggering a formal breach. Step-in rights should specify the trigger threshold, the scope of authority, the duration, and the handback process.<\/p>\n<h3>Hardship and price escalation provisions<\/h3>\n<p>Force majeure addresses impossibility. Hardship addresses situations that fall short, i.e., where extreme economic disruption changes the contract\u2019s fundamental assumptions without preventing performance entirely. They need separate clauses. The <a href=\"https:\/\/iccwbo.org\/business-solutions\/model-contracts-clauses\/icc-force-majeure-and-hardship-clauses\/\">ICC publishes a model Hardship Clause<\/a> alongside its Force Majeure Clause precisely for this reason.<\/p>\n<blockquote><p>\nIn practice: a 15\u201320% escalation trigger on key input costs, tied explicitly to a geopolitical or regulatory event, gives parties a defined renegotiation mechanism. Without it, courts will reject economic hardship claims under the force majeure clause: consistently and regardless of how dramatic the cost increase.\n<\/p><\/blockquote>\n<h3>Payment carve-outs<\/h3>\n<p>Force majeure does not automatically excuse payment. Most clauses should include an express carve-out: the obligation to pay for goods or services already received survives the event. Under South African law, the inability to pay money is \u201csubjective impossibility\u201d: money is fungible, so cash flow problems don\u2019t discharge monetary obligations. If you want payment suspended, say so.<\/p>\n<h3>The mandatory documentation requirement<\/h3>\n<p>The party invoking force majeure carries the entire burden of proof. Build the documentation requirement into the clause rather than leaving it to litigation. A clause-mandated \u201cForce Majeure File\u201d should include: time-stamped photographs and video; official government orders and regulatory notices; meteorological data for weather claims; Chamber of Commerce certificates; and operational logs documenting what was attempted and why performance was prevented.<\/p>\n<p>One specific note on Chinese FM certificates: the CCPIT issues these routinely for widespread events. COVID-19 was the prominent example. They are evidentiary, not self-executing. In common-law jurisdictions they carry weight but not legal authority. For contracts with China-facing exposure, the clause should address their evidentiary status explicitly: either recognising them as p<em>rima facie<\/em> evidence of a qualifying event, or stating that they are neither sufficient nor necessary. Silence has generated substantial litigation.<\/p>\n<h3>Partial performance and pro-rata allocation<\/h3>\n<p>Most force majeure clauses address total non-performance. They rarely address partial performance and that\u2019s a real gap. A supplier who could deliver 60% of contracted volumes but delivers nothing risks losing the force majeure defence for the portion it could have performed. Courts have rejected claims where partial performance was possible but not tendered.<\/p>\n<p>The UCC imposes a fair allocation duty when a supplier genuinely can\u2019t fill all orders. But the methodology for calculating pro-rata shares must be specified contractually. Include: obligations excused only to the extent prevented; proportional allocation among affected buyers; the basis for calculating each buyer\u2019s share; and the notification procedure.<\/p>\n<h3>Governing law and jurisdictional tailoring<\/h3>\n<p>New York courts apply strict construction: catch-all provisions are limited to events similar to those listed. California is more liberal. English courts require the event to fall squarely within the clause\u2019s language. Civil law courts may apply statutory criteria that override the contract. Every structural choice in the clause must be calibrated to the judicial construction rules of the governing jurisdiction.<\/p>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element \" >\n\t<h2>Industry-specific calibration<\/h2>\n<p>A force majeure clause that ignores the operational realities of the specific industry it governs is, at best, a starting point. Here\u2019s what changes sector by sector.<\/p>\n<table width=\"624\">\n<tbody>\n<tr>\n<td width=\"624\"><strong>Construction: Critical Path, Weather Thresholds, and FIDIC<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"624\">The most common construction force majeure claims are weather-related. But courts and arbitral panels require more than proof that it rained: the delay must have hit the critical path\u2014tasks that directly affect the completion date. Weather disrupting non-critical activities, or absorbed by scheduling float, won\u2019t qualify.<\/p>\n<p>Define weather thresholds by reference to historical data: rainfall or temperatures exceeding the 10-year or 50-year average for the project location. This gives both parties a measurable, objective standard and removes the arguments about what counts as \u201cunusual\u201d.<\/p>\n<p>Under the FIDIC 2017 Rainbow Suite, \u201cforce majeure\u201d was replaced with \u201cexceptional events\u201d, and a four-limb test applies: beyond control, not reasonably foreseeable, not reasonably avoidable, not substantially attributable to the other party. Cost recovery is available only in specified cases: war or rebellion in the country of performance. Many contractors assume FIDIC gives them more than it does.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<table width=\"624\">\n<tbody>\n<tr>\n<td width=\"624\"><strong>Energy: Geopolitical Chokepoints, Take-or-Pay, and Regulatory Intervention<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"624\">Long-term LNG contracts\u2014spanning 15 to 25 years\u2014operate in an environment of concentrated infrastructure risk and geopolitical volatility. The 2019 attack on Saudi Aramco\u2019s Abqaiq facility removed 5.7 million barrels per day from global supply. The 2026 QatarEnergy declarations following strikes on the Ras Laffan complex showed how single-point-of-failure concentration translates directly into contract invocations. These aren\u2019t tail risks; they\u2019re recurring events.<\/p>\n<p>In take-or-pay agreements, force majeure must explicitly address whether the payment obligation is suspended. Without that, a buyer who can\u2019t receive gas because a terminal was destroyed still owes minimum volume payments\u2014a catastrophic outcome. The Strait of Hormuz, which carries 20\u201321% of global LNG supply, should be named. Generic \u201cwar\u201d or \u201chostilities\u201d language may not cover a regional conflict short of declared war.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<table width=\"624\">\n<tbody>\n<tr>\n<td width=\"624\"><strong>Technology: Acts of Code, CrowdStrike, and the Data Security Carve-Out<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"624\">The CrowdStrike incident in 2024 crashed more than 8 million systems and caused an estimated $10 billion in losses. Most boilerplate force majeure clauses listed natural disasters and government actions. Almost none listed \u201cfaulty software updates\u201d or \u201cthird-party cloud provider failures\u201d. The result was widespread litigation about whether a Blue Screen of Death qualified as a force majeure event. It shouldn\u2019t have been a close question.<\/p>\n<p>Technology contracts must distinguish two very different scenarios. Service interruptions caused by a cyberattack or infrastructure failure may qualify as force majeure. Data breaches arising from negligent security practices or non-compliance with GDPR almost never do, regardless of whether an attack was the proximate cause. That distinction must be explicitly drafted. Leaving it to judicial interpretation is a gamble you&#8217;ll lose.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<table width=\"624\">\n<tbody>\n<tr>\n<td width=\"624\"><strong>Maritime: BIMCO 2022, Piracy, and the Own-Employee Strike Carve-Out<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"624\">BIMCO\u2019s 2022 clause is the most sophisticated standardised force majeure framework currently in use. Two provisions matter most. On piracy: BIMCO recommends deleting piracy from the force majeure list if the charterparty already has a dedicated war risk clause, otherwise you end up with two clauses offering inconsistent remedies for the same event.<\/p>\n<p>On strikes: only general or regional strikes qualify. A strike limited to the invoking party\u2019s own employees or their subcontractors does not. This carve-out prevents parties from using force majeure to cover labour disputes they arguably had the power to avoid.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<table width=\"624\">\n<tbody>\n<tr>\n<td width=\"624\"><strong>Manufacturing: The 135% Rule and the Allocation Duty<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"624\">US courts applying UCC Section 2-615 have repeatedly rejected impracticability claims based on price increases, including increases of 135% and more. Sophisticated manufacturers are expected to price commercial risk into their contracts. The threshold for statutory relief is much higher: \u201cextreme scarcity\u201d making it physically impossible to source a unique component, not simply making it expensive. Economic hardship requires a hardship clause, not force majeure.<\/p>\n<p>When a manufacturer does successfully invoke force majeure due to genuine supply scarcity, the UCC imposes a duty to allocate remaining supply among all customers fairly. That allocation methodology and the procedure for notifying affected buyers must be specified contractually.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<table width=\"624\">\n<tbody>\n<tr>\n<td width=\"624\"><strong>Hospitality and events: Frustration of purpose and the post-pandemic problem<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"624\">Hospitality contracts expose a mismatch between doctrine and commercial reality. A venue may be physically operational. A hotel may be open. But government gathering restrictions make the event illegal. This is not force majeure\u2014which requires the event to prevent performance\u2014but frustration of purpose, which applies when a supervening event makes one party\u2019s performance valueless to the other. They require different language.<\/p>\n<p>Post-2021, unforeseeability of pandemic risk is increasingly unavailable as a defence. Courts are finding that because parties now know pandemics happen, a frustration of purpose defence fails unless the contract explicitly names pandemics as a qualifying event. Hospitality contracts drafted without that language carry significantly elevated enforcement risk if another major health emergency occurs.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element \" >\n\t<h2>Invoking the clause: Procedural discipline<\/h2>\n<p>Good drafting isn&#8217;t enough. Procedural failures, such as late notice, inadequate documentation, failure to mitigate, are the most common reasons valid force majeure claims fail. When the event hits, do this:<\/p>\n<table width=\"624\">\n<tbody>\n<tr>\n<td width=\"200\"><strong>Step 1<\/strong><\/td>\n<td width=\"424\">Read the clause immediately. Locate every deadline\u2014notice periods, mitigation obligations, update schedules\u2014and calendar them.<\/td>\n<\/tr>\n<tr>\n<td width=\"200\"><strong>Step 2<\/strong><\/td>\n<td width=\"424\">Assess whether the event qualifies. Does it fall within the listed events? Does it satisfy the causation threshold? Is it genuinely beyond reasonable control?<\/td>\n<\/tr>\n<tr>\n<td width=\"200\"><strong>Step 3<\/strong><\/td>\n<td width=\"424\">Give formal written notice within the required window. Include the event, date of onset, expected duration, obligations affected, and initial mitigation steps. State the notice is given \u201cwithout prejudice\u201d to all other rights.<\/td>\n<\/tr>\n<tr>\n<td width=\"200\"><strong>Step 4<\/strong><\/td>\n<td width=\"424\">Start building the Force Majeure File: government orders, weather data, photographs, operational logs, Chamber of Commerce certificates.<\/td>\n<\/tr>\n<tr>\n<td width=\"200\"><strong>Step 5<\/strong><\/td>\n<td width=\"424\">Implement all commercially reasonable mitigation steps. Document each one.<\/td>\n<\/tr>\n<tr>\n<td width=\"200\"><strong>Step 6<\/strong><\/td>\n<td width=\"424\">Send regular written status updates as required by the clause.<\/td>\n<\/tr>\n<tr>\n<td width=\"200\"><strong>Step 7<\/strong><\/td>\n<td width=\"424\">Check cross-document implications: credit agreements, insurance policies, related contracts.<\/td>\n<\/tr>\n<tr>\n<td width=\"200\"><strong>Step 8<\/strong><\/td>\n<td width=\"424\">Watch the long-stop date. Be ready to exercise or respond to termination rights before they default.<\/td>\n<\/tr>\n<tr>\n<td width=\"200\"><strong>Step 9<\/strong><\/td>\n<td width=\"424\">Notify when the event ends. Resume as soon as reasonably practicable. Delayed resumption is a new breach.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3>The waiver and estoppel trap<\/h3>\n<p>You can accidentally waive the right to invoke force majeure before you\u2019ve formally claimed it. This happens more often than it should.<\/p>\n<p>If you keep accepting late deliveries, keep representing that you\u2019ll perform, or negotiate a commercial resolution without reserving your position, you may have waived the clause entirely. If you act inconsistently with a force majeure claim (partially performing while asserting you\u2019re excused from full performance), the counterparty has an estoppel argument.<\/p>\n<p>The fix is simple but must be habitual: every force majeure notice should state explicitly that it\u2019s given \u201cwithout prejudice\u201d to all other rights under the contract. If you\u2019ve already made concessions, get legal advice before invoking the clause. Silence, delay, and inconsistent conduct are the three routes through which otherwise valid claims are defeated on procedural grounds.<\/p>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t<\/div>\n\t<\/div> \n<\/div><\/div>\n\t\t<div id=\"fws_6aa15515362fb\"  data-column-margin=\"default\" data-midnight=\"dark\"  class=\"wpb_row vc_row-fluid vc_row\"  style=\"padding-top: 0px; padding-bottom: 0px; \"><div class=\"row-bg-wrap\" data-bg-animation=\"none\" data-bg-animation-delay=\"\" data-bg-overlay=\"false\"><div class=\"inner-wrap row-bg-layer\" ><div class=\"row-bg viewport-desktop\"  style=\"\"><\/div><\/div><\/div><div class=\"row_col_wrap_12 col span_12 dark left\">\n\t<div  class=\"vc_col-sm-12 wpb_column column_container vc_column_container col no-extra-padding inherit_tablet inherit_phone \"  data-padding-pos=\"all\" data-has-bg-color=\"false\" data-bg-color=\"\" data-bg-opacity=\"1\" data-animation=\"\" data-delay=\"0\" >\n\t\t<div class=\"vc_column-inner\" >\n\t\t\t<div class=\"wpb_wrapper\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element \" >\n\t<h2>Legal notice and disclaimer<\/h2>\n<p><em>This article is published by ITLawCo for informational and educational purposes only. It does not constitute legal advice and must not be relied upon as a substitute for advice from a qualified legal practitioner in the relevant jurisdiction. The law of force majeure varies significantly across jurisdictions and is subject to ongoing judicial development. Force majeure clauses must be tailored to the specific facts, industry, governing law, and commercial context of each transaction.<\/em><\/p>\n<p><em>No attorney-client relationship is created by reading or relying on this article. Case references and statutory citations are provided for illustrative purposes and should be verified before reliance. Legal counsel should be consulted when drafting, reviewing, negotiating, or invoking force majeure provisions in any commercial agreement.<\/em><\/p>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t<\/div>\n\t<\/div> \n<\/div><\/div>\n\t\t<div id=\"fws_6aa1551536ac3\"  data-column-margin=\"default\" data-midnight=\"dark\"  class=\"wpb_row vc_row-fluid vc_row\"  style=\"padding-top: 0px; padding-bottom: 0px; \"><div class=\"row-bg-wrap\" data-bg-animation=\"none\" data-bg-animation-delay=\"\" data-bg-overlay=\"false\"><div class=\"inner-wrap row-bg-layer\" ><div class=\"row-bg viewport-desktop\"  style=\"\"><\/div><\/div><\/div><div class=\"row_col_wrap_12 col span_12 dark left\">\n\t<div  class=\"vc_col-sm-12 wpb_column column_container vc_column_container col no-extra-padding inherit_tablet inherit_phone \"  data-padding-pos=\"all\" data-has-bg-color=\"false\" data-bg-color=\"\" data-bg-opacity=\"1\" data-animation=\"\" data-delay=\"0\" >\n\t\t<div class=\"vc_column-inner\" >\n\t\t\t<div class=\"wpb_wrapper\">\n\t\t\t\t\n\t<div class=\"wpb_raw_code wpb_raw_html wpb_content_element\" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<!DOCTYPE html>\n<html lang=\"en\">\n<head>\n  <meta charset=\"UTF-8\" \/>\n  <meta name=\"viewport\" content=\"width=device-width, initial-scale=1.0\" \/>\n\n  <!-- \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\n       PRIMARY META\n  \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 -->\n  <title>Force Majeure in Commercial Contracts | ITLawCo<\/title>\n  <meta name=\"description\"\n        content=\"Force majeure clauses fail when they're needed most \u2014 here's why, and how to fix it. 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A practical framework for drafting, negotiating, and invoking the clause across English, US, South African, and civil law jurisdictions.\",\n    \"abstract\": \"Most force majeure clauses fail when they are needed most. Not because the event does not qualify \u2014 but because the clause was poorly drafted, the notice was late, or nobody built an evidentiary file. 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Treitel\" },\n        \"edition\": \"3rd\"\n      }\n    ],\n    \"articleSection\": [\n      \"I. The Doctrinal Foundation\",\n      \"II. Core Components: The Must-Haves\",\n      \"III. Advanced Components: The Nice-to-Haves\",\n      \"IV. Industry-Specific Calibration\",\n      \"V. Invoking the Clause: Procedural Discipline\",\n      \"VI. 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It only applies if you wrote one, and it does exactly what the drafting says. Frustration is a common-law doctrine: it operates automatically, terminates the contract, and applies in far fewer situations than most people expect. Force majeure typically suspends obligations; frustration discharges them entirely. Where a force majeure clause exists, courts apply it first \u2014 frustration only kicks in if the clause does not cover the event.\"\n        }\n      },\n      {\n        \"@type\": \"Question\",\n        \"name\": \"Does force majeure excuse payment obligations?\",\n        \"acceptedAnswer\": {\n          \"@type\": \"Answer\",\n          \"text\": \"Not automatically. A well-drafted clause includes an express payment carve-out: the obligation to pay for goods or services already received survives the event. Under South African law, inability to pay money is treated as subjective impossibility \u2014 because money is fungible, cash flow problems do not discharge monetary obligations. If you want payment suspended during a force majeure period, the clause must say so explicitly.\"\n        }\n      },\n      {\n        \"@type\": \"Question\",\n        \"name\": \"Can economic hardship or rising costs trigger force majeure?\",\n        \"acceptedAnswer\": {\n          \"@type\": \"Answer\",\n          \"text\": \"No. Courts consistently reject force majeure claims where costs increased but performance remained possible \u2014 including US cases with price increases of 135% and more. Economic hardship belongs in a separate hardship clause. Force majeure requires impossibility or severe impracticability, not commercial inconvenience or cost escalation.\"\n        }\n      },\n      {\n        \"@type\": \"Question\",\n        \"name\": \"What happens if you fail to give notice in time?\",\n        \"acceptedAnswer\": {\n          \"@type\": \"Answer\",\n          \"text\": \"In energy and maritime contracts, late notice is often an absolute bar: the invoking party receives no relief, regardless of whether the event otherwise qualifies. In other contracts, relief runs only from the date notice is received rather than the date the event occurred. Notice requirements should be treated as conditions precedent, not administrative formalities.\"\n        }\n      },\n      {\n        \"@type\": \"Question\",\n        \"name\": \"Is a pandemic still considered unforeseeable after COVID-19?\",\n        \"acceptedAnswer\": {\n          \"@type\": \"Answer\",\n          \"text\": \"Increasingly, no. Courts are finding that parties contracting after 2020 have actual knowledge of pandemic risk and cannot claim unforeseeability. Generic catch-all language and acts of God provisions are no longer a safe basis for pandemic protection. Contracts should explicitly name pandemics, epidemics, and public health emergencies as qualifying events.\"\n        }\n      },\n      {\n        \"@type\": \"Question\",\n        \"name\": \"Does a force majeure clause cover cyberattacks?\",\n        \"acceptedAnswer\": {\n          \"@type\": \"Answer\",\n          \"text\": \"Only if the clause explicitly says so. Generic clauses drafted before 2015 almost universally omit cybersecurity events. The key distinction is between a service interruption caused by a cyberattack, which may qualify, and a data breach arising from negligent security practices or non-compliance with GDPR, which almost never qualifies regardless of whether an attack was the proximate cause.\"\n        }\n      },\n      {\n        \"@type\": \"Question\",\n        \"name\": \"Can you claim force majeure because your supplier failed?\",\n        \"acceptedAnswer\": {\n          \"@type\": \"Answer\",\n          \"text\": \"Yes \u2014 but only if you satisfy the ICC double test. You must prove that your own non-performance meets the force majeure conditions and that your supplier's failure independently meets those same conditions: that the supplier's impediment was itself beyond control, unforeseeable, and unavoidable. Establishing that your supplier defaulted is not sufficient on its own.\"\n        }\n      },\n      {\n        \"@type\": \"Question\",\n        \"name\": \"What is the ejusdem generis problem in force majeure clauses?\",\n        \"acceptedAnswer\": {\n          \"@type\": \"Answer\",\n          \"text\": \"Ejusdem generis is a rule of contractual interpretation: where a general term follows a list of specific items, courts read the general term to cover only items of the same class as those listed. A clause listing fire, flood, and storm followed by 'or any other event' may not cover a government export ban, because it is not a natural disaster. Sophisticated drafters defeat this canon by including language such as 'whether or not similar to the events listed above' or an explicit exclusion of the ejusdem generis doctrine.\"\n        }\n      },\n      {\n        \"@type\": \"Question\",\n        \"name\": \"What is the subcontractor double test in force majeure?\",\n        \"acceptedAnswer\": {\n          \"@type\": \"Answer\",\n          \"text\": \"The ICC double test requires a party invoking force majeure on the basis of a subcontractor's failure to prove two things: first, that its own non-performance satisfies the force majeure conditions; and second, that the subcontractor's failure independently satisfies those same conditions \u2014 meaning the subcontractor's impediment was itself beyond control, unforeseeable, and unavoidable. Simply showing that your supplier defaulted is not enough.\"\n        }\n      },\n      {\n        \"@type\": \"Question\",\n        \"name\": \"What is the waiver and estoppel trap in force majeure?\",\n        \"acceptedAnswer\": {\n          \"@type\": \"Answer\",\n          \"text\": \"A party can inadvertently waive the right to invoke force majeure through delay, inconsistent conduct, or failure to include without prejudice language in its communications. Continuing to accept late deliveries, making representations about continuing performance, or negotiating a commercial resolution without reserving your position may amount to waiver. Every force majeure notice should state expressly that it is given without prejudice to all other rights and remedies under the contract.\"\n        }\n      }\n    ]\n  }\n  <\/script>\n\n  <!-- \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\n       SCHEMA.ORG \u2014 HowTo (Invoking the Clause)\n  \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 -->\n  <script type=\"application\/ld+json\">\n  {\n    \"@context\": \"https:\/\/schema.org\",\n    \"@type\": \"HowTo\",\n    \"@id\": \"https:\/\/www.itlawco.com\/articles\/force-majeure-commercial-contracts#howto\",\n    \"name\": \"How to Invoke a Force Majeure Clause in a Commercial Contract\",\n    \"description\": \"The nine-step procedural discipline required to correctly invoke a force majeure clause and preserve your contractual rights. 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Can you satisfy the but-for test in a multi-cause scenario?\"\n      },\n      {\n        \"@type\": \"HowToStep\",\n        \"position\": 3,\n        \"name\": \"Give formal written notice within the required window\",\n        \"text\": \"Include the event, its date of onset, expected duration, the specific obligations affected, and initial mitigation steps. State expressly that the notice is given without prejudice to all other rights and remedies under the contract.\"\n      },\n      {\n        \"@type\": \"HowToStep\",\n        \"position\": 4,\n        \"name\": \"Begin building the Force Majeure File\",\n        \"text\": \"Gather government orders, weather data, photographs, operational logs, and Chamber of Commerce certificates immediately. The burden of proof rests entirely on the invoking party.\"\n      },\n      {\n        \"@type\": \"HowToStep\",\n        \"position\": 5,\n        \"name\": \"Implement commercially reasonable mitigation steps\",\n        \"text\": \"Document each mitigation step with specificity. Explore alternative supply sources, reroute logistics, and implement business continuity plans. The standard is commercially reasonable, not unlimited.\"\n      },\n      {\n        \"@type\": \"HowToStep\",\n        \"position\": 6,\n        \"name\": \"Send regular written status updates\",\n        \"text\": \"Provide updates to the counterparty as required by the clause throughout the force majeure period. Continuous reporting builds the evidentiary record and enables both parties to plan.\"\n      },\n      {\n        \"@type\": \"HowToStep\",\n        \"position\": 7,\n        \"name\": \"Review cross-document implications\",\n        \"text\": \"Check credit agreements, insurance policies, and related contracts that may require separate notification or that may be independently triggered by the same event.\"\n      },\n      {\n        \"@type\": \"HowToStep\",\n        \"position\": 8,\n        \"name\": \"Monitor the long-stop date\",\n        \"text\": \"Be prepared to exercise or respond to termination rights before they arise by default. If the event persists beyond the contractual long-stop period, take deliberate action rather than allowing the position to crystallise passively.\"\n      },\n      {\n        \"@type\": \"HowToStep\",\n        \"position\": 9,\n        \"name\": \"Notify when the event ends and resume performance\",\n        \"text\": \"Notify the counterparty promptly when the force majeure event ceases. Resume performance as soon as reasonably practicable. 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