From manufacturing delays to store closures, the impact of
the coronavirus has rattled China and all supply chains
connected to the country. Many businesses are affected, faced
with delays or the failure to fulfil contractual obligations.
To date, Chinese buyers of
liquefied natural gas have declared force
While force majeure clauses may be relied upon
the Chinese government is encouraging their use –
lawyers warn that they may not have been negotiated properly
Force majeure clauses
The force majeure clause is a typical legal
contract provision that addresses the unpredictable changes
that can affect a contract. It can relieve parties from
performing their contractual obligations when certain and
specific circumstances beyond their control occur, making the
contract’s performance either inadvisable,
commercially impracticable, illegal, or impossible.
If there is a force majeure clause in the contract, it has
the power to remove liability for natural and...