How Does Force Majeure Tie Into Contract Disputes?

Answer

You might have come across the term "force majeure" in contracts, particularly when it comes to business agreements. The French term, meaning ‘superior forces’, generally covers unexpected events, like natural disasters or pandemics, that can stop one or both parties from honouring their contractual obligations.

When a dispute arises over a contract, one of the big questions is whether something really qualifies as force majeure and if it actually made it impossible to meet the terms of the agreement. Resolving these disputes often requires an expert to carefully review the contract’s wording and a thorough examination of the circumstances.

If you’re facing a contract dispute and would like to discuss either your or the opposing party’s force majeure claims, get in touch with GloverPriest’s experienced Contract Dispute Solicitors.

What is Force Majeure?

In simple terms, a force majeure clause is a safety net in contracts. It’s a way to step back from your obligations if something completely out of your control happens - such as a natural disaster like a hurricane, or an unexpected event like a pandemic - which makes it impossible for you to do what you agreed to do. 

However, just because something unexpected happens doesn’t automatically mean you can use force majeure; the event has to fit within the specific terms laid out in your contract. This is especially important as ‘force majeure’ isn’t a strict term in English Law, and relies heavily upon the specific wording within a contract and the circumstances in which it is claimed.

How Does Force Majeure Affect Contract Disputes?

If something unexpected, like an act of God, makes it impossible for someone to fulfil their part of a contract, they might try to use the force majeure clause to avoid being blamed for breaking the contract. But whether that argument holds up really depends on the specific wording in the contract. 

However, whether this actually works depends a lot on the specific language used in the contract. Courts tend to follow the wording of the letter, so if the event isn’t clearly mentioned or covered, the clause might not offer any protection. Plus, the event has to be something truly unexpected and beyond either party’s control.

Common Examples of Force Majeure Events

• Acts of God: This includes natural disasters like earthquakes, floods, or hurricanes.
• War and Terrorism: Situations involving war, terrorism, or civil unrest.
• Government Actions: New laws or regulations that make it impossible to follow through on the contract.
• Pandemics: Health crises like COVID-19 that mess with normal business operations.

What to Keep in Mind with Force Majeure in Contract Disputes

If you’re dealing with a contract dispute that involves force majeure, here’s what you need to consider:

• Contract Wording: The exact language in the force majeure clause is incredibly important. Some contracts mention specific events, while others are more vague.
• Proof: The party claiming force majeure usually has to show that the event was beyond their control and directly stopped them from fulfilling the contract.
• Efforts to Mitigate: The party also needs to prove they tried their best to minimise the impact of the event on their ability to perform.

Resolving Contract Disputes Involving Force Majeure

If you’re facing a contract dispute where force majeure is in play, it’s a good idea to seek legal advice early on. A solicitor can help you determine if the force majeure clause applies and guide you on the best course of action. This might involve negotiating a resolution with the other party or, if necessary, pursuing legal action.

Why This Matters for Your Business

Understanding how force majeure works can help protect your business during unforeseen events. If you’re ever in a situation where you can’t meet your contract obligations due to something beyond your control, knowing how to properly invoke force majeure can be crucial.

Need Help with a Force Majeure Contract Dispute?

If you’re dealing with a contract dispute where force majeure might apply, it’s essential to review your contract carefully and get professional advice. At GloverPriest, our expert Contract Dispute Solicitors have extensive experience in all kinds of disputes and aim to assist with a quick resolution often without the need for a formal court procedure.
At GloverPriest, we provide friendly and transparent legal advice. If you would like further advice on contractual dispute matters, please don’t hesitate to speak to one of our expert contract solicitors today. Complete our enquiry form here.