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?
There is no overarching federal statute governing FM in the US, and FM issues are a matter of state law. Statutory recognition varies state-by-state and each state's statute will be interpreted according to its specific language and the state's rules of construction and application of FM. General FM interpretation is often a matter of state common law. But many states have adopted article 2 of the Uniform Commercial Code, which governs the sale of goods and contains a provision that, in certain circumstances, will excuse performance as a result of unforeseeable events beyond a party's control. By way of additional example, California has a Civil Code section that allows cancellation of a contract for "irresistible, superhuman cause."
FM remedies pursuant to contract?
Yes, FM rights created by contract are enforceable and typically honored. Some states construe FM clauses narrowly, while others apply a more generous interpretation.
Formalities to invoke?

Depends on the wording of the FM clause. If a FM clause requires any steps to be taken to invoke it, such steps should be followed.

Contracts typically require that a party seeking to assert FM as a basis for suspending or terminating performance must provide notice to its counterpart. Failure to timely send such notice may result in waiver or have other adverse consequences.

If the FM clause is silent, a party should ensure that it gives the counter-party seasonable/timely notice of the FM event.

For contracts involving the sale of goods, the Uniform Commercial Code requires that the party in receipt of An FM notice respond within thirty days, or the contract will lapse with respect to any affected deliveries.

Any obligation to mitigate?
The agreement can specify what the parties are required to do to mitigate the losses resulting from the FM and, if not, the law of each jurisdiction in the US will determine what is required. Some jurisdictions require absolute impossibility of performance (New York) while others require mere impracticality (California). The laws of most states will require a showing that the party claiming FM made every reasonable effort to perform through alternative means.
What is the outcome of invoking FM?

Depends on what is provided in the contract and which state jurisdiction is making the determination.

Common types of relief include:

  • terminating contractual obligations;
  • being excused from liability for non-performance or delay;
  • extending the time to perform under the contract.
Any other concepts/remedies?

Many US states recognize common law doctrines such as "impossibility" and "frustration of purpose," which may be invoked to excuse contract performance under certain circumstances. A more limited number of states recognize the doctrine of commercial "impracticability." But parties choosing to invoke these common law doctrines often face significant hurdles placed by state laws.

In state jurisdictions like New York and Texas, which construe FM clauses narrowly, the inclusion of an FM clause may preclude a party from relying upon common law doctrines.

Who should I contact with further queries?