The Aliens have landed!
Satinder Johal
Legal Associate @ Russell-Cooke Solicitors | Commercial and Corporate Law
OK, I know the aliens haven’t really landed, but if you were brave enough to walk around Oxford Circus or Leicester Square this weekend, I bet it felt like they had!
And clearly some people think that alien invasion is possible. Some years ago, I completed a summer placement and was asked to do a basic contract review. The contract had the normal things, but my attention was drawn to the force majeure clause in this contract. It stated that a force majeure event included the planet being taken over by aliens. At the time I laughed out loud at the idea of aliens transcending on to earth but I would probably have reacted the same way if the clause had provided for what happened if the whole of the UK (and soon perhaps most of the world) was in lock down?!
So what should a good force majeure clause contain, and more importantly, what do you do about the clause that’s already in your contracts. Covid-19 has left a lot of business worried about what the future holds and whether certain business will even survive this pandemic so these clauses could be your life blood or your death knell depending on which side of the table you are on.
For those of you are not too sure what force majeure means it is a clause that allows a party to suspend or terminate the performance of its obligations when certain circumstances beyond their control arise, making performance inadvisable, commercially impracticable, illegal, or impossible.
Force majeure clauses should always be drafted with a great deal of care. Whilst you may have this in your contract, it does not mean that it shall automatically apply in the current circumstances. The wording of the clause, the intention of the parties at the time the clause was drafted and many other factors will need to be considered before applying the force majeure clause in the current climate.
If you need a helping hand, in these difficult times, with the review of your contracts, in particular, the force majeure clause, then drop me a line at [email protected] for a free impartial conversation or Skype call.
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Solicitor
4 年Loved this! ??
Director at Kleyman & Co Solicitors Limited Director at COYR Ltd Director at COYS London Ltd
4 年This is a difficult time for all employers and the importance of good advice cannot be underestimated.??
Head of Legal at McLaren Applied
4 年Great article. Love the last sentence!