FORCE MAJEURE CLAUSES UNDER AUSTRALIAN AND OTHER COMMON LAW JURISDICTIONS - CREATURES OF CONTRACTS

摘要

In the current highly volatile socio-economic-political environment internationally, more companies are invoking force majeure clauses as a form of relief from performing their obligations under their contracts. Under contracts governed by common law jurisdictions, force majeure clauses are construed according to the intent given to them in the contracts. Parties need to give careful consideration to the drafting of force majeure definitions and the mechanics of those clauses to properly manage the force majeure type risks. This article examines the risk considerations, risk management approaches and legal issues when negotiating and drafting force majeure clauses in resources and infrastructure projects.