News & Analysis as of

Performance Standards Force Majeure Clause Contract Terms

Mayer Brown

Do reasonable endeavours require accepting non-contractual performance to reach a reasonable outcome?

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In the UK Supreme Court's judgment in RTI Ltd v MUR Shipping BV [2024] UKSC 18, which was handed down last week, it considered what obligations the words “reasonable endeavours” placed on a party, in the context of a force...more

Gray Reed

Winter Storm Uri – No Summary Judgment This Time

Gray Reed on

Unit Petroleum Company v. Koch Energy Services, LLC is another force majeure case arising out of winter storm Uri. Unlike a similar case, summary judgment was denied because, said the United States District Court, The word...more

Lowndes

Hurricane Idalia: Take a Hard Look at the Force Majeure Clauses and Your Business Risks

Lowndes on

With Hurricane Idalia about to cross Florida, people are naturally focused on preparations and the potential adverse impacts that it will have. For businesses, that should include analysis of contractual obligations that...more

Quarles & Brady LLP

Supply Chain Survival Series: Impracticability, Impossibility and Frustration of Purpose (Article #10)

Quarles & Brady LLP on

In our previous article, we discussed the concept of force majeure, which can excuse parties from performing their contractual obligations in certain circumstances. As explained in that article, force majeure is a contractual...more

Haight Brown & Bonesteel LLP

To pay or not to pay: knowing when you can and can’t rely on a Force Majeure

What is one way to prepare for the unexpected? A force majeure clause. The COVID-19 pandemic is the latest historical event that could neither be anticipated nor controlled by contracting parties at the time of contracting....more

Haight Brown & Bonesteel LLP

California Appeals Court Confirms the COVID-19 Force Majeure Event Did Not Excuse Contract Performance Merely Because It Became...

In West Pueblo Partners, LLC v. Stone Brewing Co., LLC, (2023 WL 3151827), the California Court of Appeal, First Appellate District, affirmed summary judgment on the basis that the COVID-19 pandemic force majeure event did...more

Quarles & Brady LLP

Supply Chain Survival Series: Force Majeure (Article #9)

Quarles & Brady LLP on

In our previous article, we discussed anticipatory repudiation and demands for adequate assurances—legal concepts that may arise when a party to a contract expects that its counterparty may not perform its end of the bargain....more

Eversheds Sutherland (US) LLP

Why a decision out of Texas might have changed what qualifies as a force majeure event

MIECO LLC v. Pioneer Nat. Res. USA, Inc. - May a seller of energy invoke force majeure to excuse its non-performance under a delivery contract – a contract that obligates the seller to deliver a particular quantity of...more

Cooley LLP

MUR Shipping U-Turn: non-contractual performance would have overcome a force majeure event

Cooley LLP on

Earlier this year, the High Court of England and Wales held in MUR Shipping BV v RTI Ltd that an obligation to undertake ‘reasonable endeavours’ to overcome a force majeure event did not require the claimant to accept...more

A&O Shearman

A freightful payment: FM clause required acceptance of non-contractual performance

A&O Shearman on

The Court of Appeal held that an obligation to use “reasonable endeavours” to “overcome” a force majeure event required a party to accept payment in Euros, instead of the contractually agreed currency of U.S. Dollars. This...more

BCLP

MUR Shipping Revisited: When force majeure and reasonable endeavours collide

BCLP on

In MUR Shipping BV v RTI Ltd the English Court of Appeal has overturned by majority the judgment of the Commercial Court in MUR Shipping BV v RTI Ltd [2022] EWHC 467 (Comm) and provided fresh guidance on when alternative...more

Lowndes

Hurricane Ian: Take a Hard Look at the Force Majeure Clauses and Your Business Risks

Lowndes on

With Hurricane Ian crossing Florida, people are naturally focused on preparations and the potential adverse impacts that it will have. For businesses, that should include analysis of contractual obligations that could be...more

Pierce Atwood LLP

Covid-19, Emergency Pandemic Orders, and Force Majeure

Pierce Atwood LLP on

The Law Court recently weighed in on a trending legal issue – the extent to which Covid-19 restrictions trigger “force majeure” contract clauses.  In 55 Oak Street LLC v. RDR Enterprises, Inc., the Law Court considered the...more

Jones Day

Conflict in Ukraine: Excuses for Non-Performance of Contracts Governed by German Law

Jones Day on

Traditionally, industry in Germany has enjoyed close commercial ties with Russia and Ukraine. The ongoing conflict in Ukraine and the resulting sanctions imposed on Russia—and by Russia—will inevitably affect these business...more

Jones Day

Conflict in Ukraine: Liability for Non-Performance Under English Law

Jones Day on

The ongoing conflict in Ukraine, and the severe sanctions imposed by governments globally in response to Russia's aggression, are having extreme effects on parties' legal obligations, and are drastically altering the...more

Lowenstein Sandler LLP

Current Trends in Force Majeure Clauses in the Wake of COVID-19: Frustration of Purpose as an Alternative Argument

Lowenstein Sandler LLP on

In the wake of COVID-19, litigants have increasingly sought to excuse contractual performance by invoking force majeure clauses. In the early stages of the pandemic, there were few reported decisions on these matters, and the...more

BCLP

Key trends in contractual negotiations

BCLP on

The pandemic has put many contractual relationships under immense pressure. We explored in our last Business as (un)usual article some of the problems which contracting parties may have inadvertently created for themselves...more

Emmet, Marvin & Martin LLP

COVID-19 And The Law: Time To Check Your Force Majeure Clause

The ongoing COVID-19 pandemic continues to leave businesses in limbo. Prolonged government shutdowns and health restrictions designed to limit the spread of the coronavirus have disrupted contractual relations across the...more

Weber Gallagher Simpson Stapleton Fires &...

UPDATE:  New York Federal District Court Cites two Pennsylvania Supreme Court Cases When Recognizing Right to Invoke Force Majeure...

At the onset of the coronavirus (COVID-19) pandemic, four Pennsylvania businesses challenged Governor Tom Wolf’s statutory authority to close non-essential (or non-life sustaining) businesses to mitigate the public health...more

Bradley Arant Boult Cummings LLP

Use the Force? Understanding Force Majeure Clauses

It has been said that, sooner or later, everything old is new again. In the wake of the novel coronavirus pandemic (COVID-19) sweeping the globe in 2020, a heretofore largely overlooked and even less understood nineteenth...more

Eversheds Sutherland (US) LLP

COVID-19: Natural disaster or contractual quandary?

As the ever-evolving COVID-19 pandemic is no longer considered “unprecedented” and the restrictions associated with the pandemic have become a part of “the new abnormal,” district courts nationwide are beginning to grapple...more

Robinson+Cole Manufacturing Law Blog

Force Majeure Litigation Involving Manufacturers

Earlier this year, I provided our 2021 Corporate Compliance and Litigation Outlook for Manufacturers. I noted that even though we had been counseling a lot of manufacturers on force majeure events (i.e., the ability to...more

Seyfarth Shaw LLP

California Courts Weigh in on Contractual Obligations in the Era of COVID-19

Seyfarth Shaw LLP on

As discussed in previous updates, courts across the country continue to grapple with the application of force majeure provisions in contracts, as well as the related legal doctrines of impossibility, frustration of purpose,...more

Morris James LLP

Impossibility or Impracticability of Contractual Performance Caused by COVID-19 Under Delaware Law

Morris James LLP on

Our earlier article explored Delaware case law interpreting force majeure provisions in the context of COVID-19. But what happens when a contract omits or contains a sparse force majeure clause? In those circumstances, common...more

Morgan Lewis - Tech & Sourcing

Contract Corner: Vendor Financial Viability Provisions – the New Normal?

Although many companies are already revisiting contractual provisions relating to nonperformance, like force majeure clauses, as the coronavirus (COVID-19) pandemic continues to wreak havoc on public health and the economy,...more

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