Force Majeure Comparative Table
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Is FM recognized in statute? If yes, what is impact of statutory rules on FM clauses in contracts?

Generally, yes.

Czech law does not provide for statutory definition of FM. However, the concept has been implemented in several provisions of the Civil Code which provide the contractual parties with the following options:

  1. Renewal of contractual negotiations in case of unexpected change of circumstances leading to a gross disproportion in the rights and obligations of the parties (section 1765 of the Civil Code)
  2. Possibility to withdraw from the contract in case the party to a contract is entitled to choose the performance and such choice was frustrated by force majeure or by the other party
  3. Liberation from the contractual obligation if performance of the contract becomes impossible due to an event not attributable to the debtor (section 2006 of the Civil Code)
  4. Exemption from liability for damages caused by failure to fulfill the contractual obligation if such failure results from extraordinary and unpredictable circumstances arising independently of the will of the debtor (section 2913 of the Civil Code)
FM remedies pursuant to contract?

The contractual parties are free to modify or eliminate sections 1765 and 2913 of the Civil Code to the extent that contractual obligations do not become unbalanced to the sole profit of one of the parties.

The contractual parties can also introduce different FM definition or modify the consequences of FM in the contract.

Section 2006 of the Civil Code is mandatory and therefore, it cannot be derogated by the parties.

Formalities to invoke?

Renewal of contractual negotiations under section 1765 of the Civil Code must take place “within a reasonable time” which is presumed to be two months if not proved otherwise.

The contractual parties should also inform each other of any changes to the contract performance related to FM without undue delay.

Any obligation to mitigate?

Yes. There is a general statutory obligation to mitigate damages (section 2900 of the Civil Code).

What is the outcome of invoking FM?

(i) Renewal of contractual negotiations (section 1765 of the Civil Code), under which the parties either come to an agreement on contract amendment or it is possible to file a request to the court to restore balance of the contractual obligations of the parties or cancel the contractual obligation;

(ii) Liberation from the contractual obligation (Section 2006 of the Civil Code); and

(iii) Exemption from liability for damages (Section 2913 of the Civil Code)

Any other concepts/remedies?

If the parties agreed on mutual performance of the contract, the first party to fulfill the obligation may refuse to do so under the circumstances that the performance of the other party is in jeopardy due to the newly arisen circumstances which were unknown at the time the parties had entered into the contract.

Who should I contact with further queries?