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How can you handle disputes about force majeure and cancellation?

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When you organize or attend a conference, you may encounter situations where the event is cancelled or postponed due to unforeseen circumstances, such as natural disasters, pandemics, or political unrest. These situations can trigger disputes between the parties involved, especially if the contract does not clearly specify the terms and conditions of cancellation and force majeure. Force majeure is a legal concept that refers to an event or circumstance that is beyond the reasonable control of the parties and prevents them from fulfilling their obligations. In this article, we will discuss how you can handle disputes about force majeure and cancellation in the context of conferences.

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INAYATUR RAHMAN MS(EM)│BE(Electronics)

Engineering Sales Manager | KHAN BROTHERS | DANFOSS/NIDEC LV Drives/Soft Starters | SIEMENS PIs |
Muhammad Talha Ibrahim

Drop by drop. You break the rock.

1 Understand your contract

The first step to handle disputes about force majeure and cancellation is to understand your contract and the rights and obligations of each party. You should review the clauses that define what constitutes force majeure, what are the consequences of cancellation, what are the procedures and timelines for notification and resolution, and what are the remedies and liabilities for breach of contract. You should also check if your contract has an arbitration or mediation clause that specifies how to resolve disputes amicably and efficiently.

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INAYATUR RAHMAN MS(EM)│BE(Electronics)

Engineering Sales Manager | KHAN BROTHERS | DANFOSS/NIDEC LV Drives/Soft Starters | SIEMENS PIs |
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The best approach is to work constructively with your customers to find a solution that is acceptable to them. That may be an offer to reschedule at a later date, or it may be a full no-strings-attached refund. Now more than ever, customers are hoping to find compassionate and flexible customer service as they struggle to negotiate the hardships wrought by the situation. Don’t add to their stress—offer a solution that makes them happy and you can avoid disputes and strengthen your customer relationships in one fell swoop.

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Muhammad Talha Ibrahim

Drop by drop. You break the rock.
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In light of customer care management, it is the main thing to learn the point of contract which was finalized among parties. And if the external influences are not there, add them as soon as possible. Secondly if something happens suddenly than one can compensate it later to maintain the customer. Whereas in case of cancellation make them happy to go so they will not spread bad words regarding any project.

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Izhar Levy

Dual Qualified Lawyer (England & Wales; Israel) | Head of Privacy & Commercial at Rapyd | Lecturer at Ono Academic College | CIPP/E, CIPM, FIP - IAPP
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Make sure that BEFORE you enter into the contract, Force Majeure [FM] clauses are drafted properly so that it will be clear which events trigger FM and what are its consequences. For example, at the early days of C-19 pandemic, many contracts were suspended/cancelled due to lockdowns. We then realised that the pandemic would last for many months and so FM's clauses had to be adapted accordingly, eg, some industries were still able to provide their services amid the lockdowns. Note: under English Law, frustration (which is the equivalent to FM) has a narrow application - it will apply by a default unless the parties agree otherwise (civil law: parties may be excused until frustration has elapsed; English law is more strict).

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2 Communicate with the other party

The second step to handle disputes about force majeure and cancellation is to communicate with the other party and try to reach a mutual agreement. You should be proactive, transparent, and cooperative in your communication and avoid escalating the conflict. You should also document all your correspondence and actions in case you need to prove your position later. You should aim to find a win-win solution that minimizes the losses and damages for both parties, such as rescheduling the event, offering refunds or credits, or renegotiating the contract terms.

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3 Seek legal advice

The third step to handle disputes about force majeure and cancellation is to seek legal advice if you cannot resolve the issue with the other party or if the dispute is complex or contentious. You should consult a lawyer who specializes in contract law and has experience in dealing with force majeure and cancellation cases. A lawyer can help you understand your legal rights and obligations, assess the risks and benefits of pursuing or defending a claim, and advise you on the best course of action.

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4 Consider alternative dispute resolution

The fourth step to handle disputes about force majeure and cancellation is to consider alternative dispute resolution (ADR) methods, such as arbitration or mediation, if your contract allows it or if both parties agree to it. ADR methods are usually faster, cheaper, and more flexible than litigation, and can help preserve the relationship between the parties. Arbitration is a process where a neutral third party, called an arbitrator, makes a binding decision on the dispute after hearing both sides. Mediation is a process where a neutral third party, called a mediator, facilitates a dialogue between the parties and helps them reach a voluntary settlement.

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Izhar Levy

Dual Qualified Lawyer (England & Wales; Israel) | Head of Privacy & Commercial at Rapyd | Lecturer at Ono Academic College | CIPP/E, CIPM, FIP - IAPP
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It may be useful to include in the contract an ADR mechanism/clause (usually this would be arbitration) as a default although it may be possible to seek ADR even without such clause if both parties agree to litigate outside of court once a dispute has arised. In some jurisdictions, court will encourage the parties to seek ADR as part of its civil procedure protocols.

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5 Prepare for litigation

The fifth step to handle disputes about force majeure and cancellation is to prepare for litigation if ADR methods fail or are not feasible. Litigation is a process where a court of law decides on the dispute after hearing both sides. Litigation can be costly, time-consuming, and unpredictable, and can damage the reputation and relationship of the parties. You should prepare your evidence and arguments, comply with the procedural rules, and hire a competent lawyer to represent you in court.

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6 Learn from the experience

The sixth step to handle disputes about force majeure and cancellation is to learn from the experience and improve your contract and risk management practices for future events. You should evaluate the outcomes and impacts of the dispute, identify the lessons learned and best practices, and implement the necessary changes and improvements. You should also review your contract templates and clauses, update your force majeure and cancellation policies, and ensure that you have adequate insurance coverage and contingency plans for unforeseen events.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you handle disputes about force majeure and cancellation?

1

2

3

4

5

6

7

1 Understand your contract

2 Communicate with the other party

3 Seek legal advice

4 Consider alternative dispute resolution

5 Prepare for litigation

6 Learn from the experience

7 Here’s what else to consider

Conferences

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How can you handle disputes about force majeure and cancellation?

1

2

3

4

5

6

7

1 Understand your contract

2 Communicate with the other party

3 Seek legal advice

4 Consider alternative dispute resolution

5 Prepare for litigation

6 Learn from the experience

7 Here’s what else to consider

Conferences

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