How to make use of a Force Majeure Situation..

Force Mejeure : Force majeure is a legal term that describes an exceptional event or situation that is beyond the control of parties to a contract. It can be a natural disaster, such as an earthquake, a pandemic, or a government-imposed restriction. It shall also include local riots that can have a devastating impact on businesses or Projects.

Is Force majeure a negative situation, always? No, in fact, it can be beneficial to both parties in some cases. When a force majeure event occurs, use the situation to reassess and adjust contract to accommodate new conditions. This can result in a more favourable outcome for both parties.

For example, Contract of a delayed Project due to COVID 19, could have been revised to extend the deadline. This can be helpful especially in cases where one party needs more time or resources than initially anticipated. In some cases, re-negotiation of contract due to Force Majeure may result in a more favourable outcome for both parties, as they may be able to agree on new terms.

Force majeure can also provide an opportunity for the parties to resolve any issues that have arisen from the situation. For example, if a force majeure event resulted in financial losses for one party, the other party may be willing to negotiate a settlement that is more favourable for both parties. This help them avoid a lengthy legal battle and to bring both parties closer in terms of understanding each other resulting in long term business association.

Overall, force majeure is not always a negative event. It helps the parties to contract to identify opportunities to renegotiate, to resolve any issues that have arisen, to create a more favourable business outcome and to have a long term business association.