Ad image
  • Home
  • Ask and Answer
  • Psychological
  • Export import
  • About Us
    • Contact
    • Privacy Policy
Reading: Force Majeure: The Concept and Its Impact on Contracts
Share
Kylonews.comKylonews.com
Aa
  • Home
  • Ask and Answer
  • Psychological
  • Export import
  • About Us
Search
  • Home
  • Ask and Answer
  • Psychological
  • Export import
  • About Us
    • Contact
    • Privacy Policy
Have an existing account? Sign In
Follow US
Kylonews.com > Blog > Ask and Answer > Force Majeure: The Concept and Its Impact on Contracts
Ask and Answer

Force Majeure: The Concept and Its Impact on Contracts

admin
157.1k Views
Share
7 Min Read
SHARE

Force majeure is a term used to describe events that occur beyond human control and cannot be avoided. Decisions taken or actions taken by a person cannot influence or control these events. Examples of force majeure events include natural disasters, wars, fires, accidents or system failures.

In a legal context, force majeure is often considered in a contract as a basis for releasing one of the parties from the obligation to fulfill the obligations stated in the contract. This can happen if a force majeure event makes the party concerned unable to fulfill the obligations stated in the contract.

In this article, we will discuss in more detail what force majeure is, the concepts governing force majeure in law, and examples of force majeure events that often occur. In addition, we will also discuss how force majeure can affect the fulfillment of contractual obligations and how the parties to the contract can handle force majeure events.

Definition and Concept of Force Majeure

Force majeure is a term that comes from the French which means “greater force”. In the legal context, force majeure is considered as an event that occurs beyond human control and cannot be avoided. Such force majeure events may affect the fulfillment of the obligations stated in the contract.

The principles governing force majeure in law consist of three things, namely:

– Force majeure events must occur beyond human control and cannot be avoided.
– Force majeure events must affect the fulfillment of the obligations stated in the contract.
– The party concerned must show that the force majeure event did occur and affect the fulfillment of obligations.

In contracts, force majeure is often regulated in a section called the force majeure clause. This clause explains what is considered a force majeure event, how force majeure events will be considered in the contract, and how the parties to the contract can handle force majeure events. If a force majeure event occurs, the party concerned must notify the other party immediately so they can find an appropriate solution.

Examples of Force Majeure Events

Force majeure events often occur throughout the world and can affect the fulfillment of contractual obligations. Some examples of force majeure events that often occur are:

1 Natural disasters, such as earthquakes, tsunamis, floods and droughts.
2 War or armed conflict.
3 Fire or accident causing damage to facilities or equipment.
4 System failure, such as failure of the power grid or telecommunication system.

These events can affect the fulfillment of obligations in the contract, especially if the incident occurs in a location where the party concerned must perform an obligation. For example, if an earthquake occurs which causes damage to the facilities used to carry out obligations, then the parties concerned cannot fulfill their obligations according to the agreed schedule.

In addition, force majeure events can also affect the fulfillment of obligations in the contract in the event of war or armed conflict at the location where the party concerned must carry out obligations. System failures, such as power grid or telecommunications system failures, can also affect the fulfillment of contractual obligations if the system is used to perform the obligations.

Impact of Force Majeure on the Contract

Force majeure can affect the fulfillment of obligations in the contract by preventing or making the party concerned unable to fulfill the obligations stated in the contract. If a force majeure event occurs, the party concerned must notify the other party immediately and show that the force majeure event did occur and affects the fulfillment of obligations.

The parties to the contract can handle force majeure events by:

* Change the schedule for fulfilling obligations according to existing conditions.
* Looking for alternative solutions to fulfill the obligations stated in the contract.
* Cancel or terminate the contract.

The law treats force majeure by freeing the party concerned from the obligation to fulfill the obligations stated in the contract. However, the party concerned must show that a force majeure event did occur and affected the fulfillment of obligations.

The Importance of Contract Clauses When a Force Majeure Occurs

One way to deal with force majeure in a contract is to include a clause force majeure in the contract. This clause will regulate how force majeure events will be faced by both parties. A force majeure clause will usually include information about what is considered a force majeure event, how the force majeure event will be dealt with, and how the contract will be continued after the force majeure event.

With the existence of a contract clause that regulates force majeure, both parties can be better prepared to deal with force majeure events that may occur. In addition, the right contract clauses can also help maintain a good relationship between the two parties. Without a contractual clause that regulates force majeure, both parties may feel uncertain and confused about the force majeure event that occurs.

Therefore, it is important for both parties to include contractual clauses regarding force majeure in a contract so that they can be better prepared for force majeure events that may occur. Thus, both parties can avoid problems that may occur during the implementation of the contract.

admin
Share this Article
Facebook Twitter Email Print
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Market Chart Today

Recent Posts

  • Trading Psychology in terms of Neuroscience

    Trading Psychology in terms of Neuroscience

    Before discussing what Neuroscience is and its influence on aspects of a trader’s behavior, let’s first understand what Neuroscience is …
  • Brand Awareness: Definition, Benefits, How to Build, and The Indicators

    Brand Awareness: Definition, Benefits, How to Build, and The Indicators

    In running a business, making innovative products and having good quality is not enough. Business actors must also be able …
  • It used to be worth $ 0, this is how the price of Bitcoin changes from year to year

    It used to be worth $ 0, this is how the price of Bitcoin changes from year to year

    Bitcoin is a cryptocurrency asset that has the largest market capitalization in the world, as well as being the most …
  • 4 Ways to Get Ideal Capital for Forex Trading

    4 Ways to Get Ideal Capital for Forex Trading

    A common problem that retail traders have is limited capital. The majority of retail trading traders use capital that is …
  • Critical Mass in Business: Recognizing the Concept, Influencing Factors, and How to Achieve It

    Critical Mass in Business: Recognizing the Concept, Influencing Factors, and How to Achieve It

    Critical Mass is a very important concept in the business world, especially in determining the success of a company. Critical …
Facebook Like
Twitter Follow
Pinterest Pin
Youtube Subscribe

LATEST NEWS

Why are there more forex brokers than stock brokers?

admin admin
What is a Multi Account Manager (MAM)?
What is the FOMC (Federal Open Market Committee)?
What is meant by Economic Recovery?
Trading Psychology in terms of Neuroscience

Most Popular

Export import

Getting to Know Bank Reconciliation: Why Is It Important and How Is It Done?

Have you ever found an error in your company's financial statements that you can't explain? Or maybe you have doubts about the accuracy of the balance in your bank account? If so, maybe it's time to do a bank reconciliation. Bank reconciliation is a process that compares a company's financial…

7 Min Read
Export import

Getting to Know the Business Environment: What is it and How to Understand It?

9 Min Read
Ask and Answer

Currency War, What Is It?

7 Min Read
Ask and Answer

Insurance Franchise: Definition, Benefits, and Steps

9 Min Read
Ask and Answer

The 5 Worst Crisis That Ever Happened to the World Economy

10 Min Read
Psychological

Bill of Exchange (BoE)

10 Min Read
Export import

Getting to Know Bank Reconciliation: Why Is It Important and How Is It Done?

Have you ever found an error in your company's financial statements that you can't explain?…

7 Min Read
Kylonews.com

Engaged in Business and Technology news.

Office : 304 Orchard Rd, #03-39 Lucky Plaza, Singapore 238863

© 2020 – 2025 Kylonews Network. Business Company. All Rights Reserved.

Follow US on Socials

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?