Notice of Contract Suspension Due to Force Majeure Events

 

What is a Notice of Contract Suspension Due to Force Majeure Events?

A Notice of Contract Suspension Due to Force Majeure Events informs a party to a contract about a force majeure event that has affected the contract. With this document, the affected party will inform the other side that there will be a suspension of their contractual obligations as a result of the force majeure events.

A force majeure event is an extraordinary event that is outside of the parties' control and makes it impossible or dangerous to perform the contract. These events include acts of God (i.e. extreme weather conditions), natural disasters, pandemics, labour strikes etc. This document should only be used for commercial contracts (such as sale of goods agreement, consultancy agreement, loan agreement, service agreement and so on).

Is it mandatory to have a Notice of Contract Suspension Due to Force Majeure Events?

Yes, it is mandatory to issue a notice of contract suspension due to force majeure events. A force majeure clause within a contract typically requires the affected party to notify the other party within a specified time frame.

The notice should include details about the event and its impact on the party's ability to perform. It is also usually recommended to safeguard legal rights, maintain transparency, and foster good faith negotiations.

What are the prerequisites of a notice of contract suspension due to force majeure event?

The contract must contain a force majeure clause that outlines the circumstances under which the clause can be invoked. It should define qualifying events and specify the obligations affected by those events.

What has to be done once a Notice of Contract Suspension Due to Force Majeure Events is ready?

Once a notice of contract suspension due to force majeure event is ready, the parties involved should:

• Review the force majeure clause: ensuring that the event is covered by the clause and there is causal link between the event and any non-performance.
• Follow the contract's procedures: Notify the other party as per the contract's procedures to avoid breach of contract.

 

Is it necessary to have witnesses for a Notice of Contract Suspension Due to Force Majeure Events?

it is not necessary to have witnesses for a Notice of Contract Suspension Due to Force Majeure unless specifically required by the contract.

What are some examples of force majeure events?

These events include:

• Natural disasters, such as hurricanes and earthquakes;
• Explosions;
• Pandemics;
• War and invasion;
• Government orders;
• Blockades and embargos;
• Labor strikes and shortage of power.

What events do not constitute force majeure events?

These events include:

• Economic hardship such as market downturns;
• Failure of suppliers or subcontractors;
• Acts of negligence of mismanagement;
• Predictable events such as annual weather patterns like storms in winter and seasonal labor shortages.

 

What must a Notice of Contract Suspension Due to Force Majeure event contain?

• Contact references and parties involved;
• Description of force majeure event;
• Efforts to mitigate;
• Duration of suspension;
• Signature;
• Delivery method and proof: specifying how the notice will be delivered (e.g., registered mail, email).

Applicable law

There is no statute or law governing force majeure in the United Kingdom. Force majeure provisions are governed by the provisions of the commercial contract between the parties.

Help from a lawyer

You can choose to consult a lawyer if you need help.

The lawyer can answer your questions or help you through the process. You will be offered this option when you complete the document.

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