Force Majeure and Commercial Impracticability in Purchasing and Sales Contracts
1 hour 30 minutes
Gain an understanding of what’s covered by your force majeure clause.
Your supplier’s plant was severely damaged by an earthquake and is claiming it is excused from filling your orders. A strike has stranded a shipment, and your supplier claims it is not responsible for any delay. Or your supplier is claiming that a shortage of raw material and spike in prices has made it impossible for it to perform. What are your rights? Is your supplier really excused from fulfilling the contract? If so, what must they do to minimize harm to you, and what actions can you take to protect yourself? This topic will provide you a basic understanding of your rights in these circumstances. You will receive a primer on the types of events that often do, and do not, excuse performance under a force majeure clause or the doctrine of commercial impracticability, the duty for available supply to be allocated among customers, and notifications to which you are entitled. Focused on practical steps, and not just theory, you will be interested in this timely discussion of what to do when disaster strikes.
• You will be able to identify force majeure clauses.
• You will be able to discuss procedures after a force majeure event.
• You will be able to explain tips for drafting effective force majeure clauses.
• You will be able to review the origins of force majeure & commercial impracticability.