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27 Oct 2022

Force majeure clauses - unfair, unreasonable?

This article is not legal advice and the opinions are the author’s and do not represent the opinions of WorldCC.

Defined simply, a force majeure clause1 typically states that either the government or the contractor may terminate a contract if an extraordinary event prevents either or both from performing. The contractor will not earn the profit expected when the contract was executed. Given that, are force majeure clauses unfair, unreasonable? If you are on the right side of this clause, you would claim it’s fair and reasonable. But if not, it might be bad news.


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