Force Majeure - Chapter 13 - Navigating Maritime Arbitration
Originally from Navigating Maritime Arbitration: The Experts Speak
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The term force majeure originates in French meaning a greater force. Force majeure is used to describe any event that is unexpected by parties to a contract, not caused by any party, and affects the relationship between them. Its use can limit the ability of either party’s duty to perform or require a party to intrude on a privilege of the other. A force majeure clause in a contract can be used to preclude liability to the other party in the event that some situation or circumstance makes performance impossible. Generally, once a party to a contract has made a promise, the promising party must perform its contractual obligations. Under normal circumstances, failure to perform on the contract terms requires the party to respond in damages for its failure even when unforeseen1 circumstances make performance burdensome. However, a force majeure clause is not the only recourse for excuse from performance available to contracting parties. Doctrines of Impossibility, Commercial Impracticability, Frustration, and Acts of God may result in a similar remedy. Unlike acts of God2, force majeure includes natural events (e.g, floods, hurricanes, tsunami, tornado) and acts by a human agency (e.g., war, embargos, labor unrest). Therefore, force majeure is neither interchangeable nor synonymous with an Act of God.