Expecting the Unexpected: the Force Majeure Clause

Unforeseeable and unavoidable events do occur and therefore must be taken into consideration by parties in their economic, political, and natural disaster risk assessment of long-term international projects. Many international contracts, however, merely contain 'boilerplate' force majeure clauses that are not tailored to reflect the particular agreement, which might lead to problems if a force majeure event later materialises. By carefully reviewing the applicable law and drafting a force majeure clause that is tailored to the agreement, the force majeure clause can come to the rescue when such events occur. This article discusses the relevance of applicable law to force majeure and explores the most common formulations of the force majeure clause to assist drafters in tailoring the clause to their agreements.