An "Agreement null and void" clause stipulates that the contract or certain provisions within it will have no legal effect if specific conditions or contingencies are not met.
A clearly articulated force majeure clause can protect partnerships by preventing disputes over who is at fault when unpredictable events occur. By addressing risks proactively in the contract, both parties can move forward cooperatively once normal conditions resume.
Either Party shall be excused from performance and shall not be in default in respect of any obligation hereunder to the extent that the failure to perform such obligation is due to a Natural Force Majeure Event.
The major difference in such cases is that, without a force majeure clause, the party that wants to be released from contract obligations has the burden of proof, which means that this party must prove their argument is correct. If the other contracting parties do not agree, this could lead to litigation.
Force majeure in any given situation is controlled by the law governing the contract, rather than general concepts of force majeure. Contracts often specify what constitutes force majeure via a clause in the agreement. So, the liability is decided per contract and neither by statute nor principles of general law.
Commonly referred to as “acts of God”, force majeure events are unforeseeable, exceptional or out with the control of contracting parties. Examples include natural disaster, terrorism, industrial strike action, fire and pandemic/epidemic events such as Covid-19.
If a contract is silent on force majeure or if the event does not meet the definition of force majeure under the parties' contract, a party's performance may still be excused in certain circumstances under the doctrine of commercial impracticability.
It is understood and agreed by the Parties hereto that the following will not constitute event(s) of force majeure: the loss of Buyer's markets, not otherwise due to an event of force majeure; Buyer's inability economically to use or resell Gas purchased hereunder,hereunder; increases or decreases in Gas supply due to ...
Parties seeking to rely on force majeure are required to show and evidence (i) that the event is unforeseeable and inevitable; (ii) that the event is out of the risks and liabilities under the contract; and (iii) the impact of such event on the performance of their obligations.
(1) Neither Party shall be in breach of its obligations under this Agreement (other than payment obligations) or incur any liability to the other Party for any losses or damages of any nature whatsoever incurred or suffered by that other (otherwise than under any express indemnity in this Agreement) if and to the ...