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Contracts","url":"https:\/\/staging.london-law.co.uk\/force-majeure-commercial-contracts\/","datePublished":"2023-10-05","dateModified":"2025-01-24","mainEntityOfPage":"https:\/\/staging.london-law.co.uk\/force-majeure-commercial-contracts\/","author":{"@type":"Person","@id":"https:\/\/staging.london-law.co.uk\/author\/coby\/#Person","name":"coby","url":"https:\/\/staging.london-law.co.uk\/author\/coby\/","identifier":17,"image":{"@type":"ImageObject","@id":"https:\/\/staging.london-law.co.uk\/wp-content\/litespeed\/avatar\/095b94eeb56f604e46bfd6673afa9194.jpg","url":"https:\/\/staging.london-law.co.uk\/wp-content\/litespeed\/avatar\/095b94eeb56f604e46bfd6673afa9194.jpg","height":96,"width":96}},"publisher":{"@type":"Organization","name":"AlexanderJLO London Law","logo":{"@type":"ImageObject","@id":"https:\/\/staging.london-law.co.uk\/wp-content\/uploads\/2018\/03\/ajlo-logo.png","url":"https:\/\/staging.london-law.co.uk\/wp-content\/uploads\/2018\/03\/ajlo-logo.png","width":460,"height":275}},"image":{"@type":"ImageObject","@id":"https:\/\/staging.london-law.co.uk\/wp-content\/uploads\/2023\/10\/Understanding-Force-Majeure.jpg","url":"https:\/\/staging.london-law.co.uk\/wp-content\/uploads\/2023\/10\/Understanding-Force-Majeure.jpg","height":666,"width":1000},"keywords":null,"commentCount":"2","comment":[{"@type":"Comment","@id":"https:\/\/staging.london-law.co.uk\/force-majeure-commercial-contracts\/#Comment1","dateCreated":"2023-10-18 20:29:16","description":"Hello Bill and thank you for the interest in our blog.\r\n\r\nWhilst we cannot give specific advice in relation to this issue particularly when we have not seen the contract, the following analysis in general terms may be of assistance.\r\n\u00a0\r\nIf no force majeure clause exists in your contract, then the doctrine of frustration may apply where unforeseen events happen and it is important for all businesses to understand how the concept works and when it is appropriate to use it. In certain circumstances, contracting parties may seek to rely on frustration to remove themselves from existing onerous contractual arrangements and to reduce their financial exposure.\r\n\u00a0\r\nThe principle of frustration comes into play when an unexpected event renders the performance of a contract impossible or transforms the contract into something completely different from what the parties originally intended.\r\n\u00a0\r\nIf frustration is successfully invoked, the contract is effectively terminated. Unlike other legal doctrines, there is no specific or rigid test to establish frustration. The court takes a broad approach, considering all the facts and circumstances of the case. However, there are some general factors that are typically present in frustration cases:\r\n\u00a0\r\n1. The event causing frustration occurs after the contract is formed.\r\n2. Neither party is at fault for the frustrating event.\r\n3. The event fundamentally alters the nature of the contract, going beyond what the parties had in mind when they entered into it.\r\n4. The event renders further performance of the contract impossible, sometimes even illegal, or drastically different from what was originally contemplated.\r\n\u00a0\r\nIn certain situations, one party may have already made payments to the other party before the frustrating event occurs. In such cases, it may be possible to recover those payments if the contract falls within the scope of the Law Reform (Frustrated Contracts) Act 1943 and certain conditions of the act are met. Additionally, under common law, a party may be able to recover payments made only if there has been a complete failure of consideration.\r\n\u00a0\r\nRecent cases involving frustration have demonstrated that the threshold to satisfy this doctrine is quite high. Therefore, it is crucial for businesses to carefully review contractual clauses before entering into agreements.\r\n\u00a0\r\nI hope this is if assistance. If you do require anything further then by all means give me a call on 020 7537 7000 or email me at peter@london-law.co.uk\r\n\u00a0\r\nPeter Johnson\r\nSenior Partner","author":{"@type":"Person","name":"Peter Johnson","url":""}},{"@type":"Comment","@id":"https:\/\/staging.london-law.co.uk\/force-majeure-commercial-contracts\/#Comment2","dateCreated":"2023-10-18 03:12:46","description":"Good morning.\r\n\r\nI have a commercial contract which for various reasons has become impossible to perform. Unfortunately it does not include any force majeure provisions.\r\n\r\nIs there anything I can do?","author":{"@type":"Person","name":"Bill","url":""}}]}]}