Force Majeure Comparative Table
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Force Majeure Comparative Table Start Comparison
Is FM recognized in statute? If yes, what is impact of statutory rules on FM clauses in contracts?
Yes, the Brazilian Civil Code provides, as a general rule, that the party is exempt of liability in case of FM. A FM is a necessary fact which affects the parties and could not be avoided or prevented. Beyond the legal definition, the parties may expand or elaborate on the consequences of the FM by written agreement.
FM remedies pursuant to contract?
If the agreement is silent on the occurrence and consequences of a FM event, the Brazilian Civil Code will mandatorily apply the general concept that in case of a FM event the party affected by it will be exempt from liability.
Formalities to invoke?
Brazilian Civil Code is silent on this but general practice is the affected party should immediately give written notice to the other party.
Any obligation to mitigate?
Yes, to the extent possible the non-complying party must mitigate the consequences of the FM event as much as possible.
What is the outcome of invoking FM?
Exemption of liability.
Any other concepts/remedies?
One of the elements characterizing a FM is that the parties could not have anticipated or predicted the FM event. Such requirement may also be characterized as an excessive burden that could give grounds to terminate the agreement. Note that unpredictability is not the only requirement for excessive burden.
Who should I contact with further queries?
Disclaimer: Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.