Force Majeure Clause In An Agreement

With regard to the explicit exclusion of the Covid 19 pandemic from the scope of force majeure, the value is that the parties can reach an agreement during the pandemic crisis, the current crisis being already taken into account in the risks assumed by the parties and constituting no reason to apologize. On the other hand, the risk of explicit exclusion from the Covid 19 pandemic is that if the pandemic situation changes dramatically or deteriorates sharply, the parties will not be able to raise a case of force majeure. Force majeure clauses are one of those types of clauses that, if you need them, you really need them. It is important to note that due to the scale of the coronavirus outbreak and lockdowns imposed by the Chinese government, a quasi-public agency called the China Council for the Promotion of International Trade (CCPIT), backed by Beijing`s Ministry of Commerce, has provided force majeure “certificates” to Chinese companies. CCPIT issues force majeure certificates when companies are able to provide documents demonstrating that they are unable to fulfill their contractual obligations due to the effects of the coronavirus. [16] In light of the above, invoking a force majeure clause can be successful if a company established in China in a government-imposed restricted area has a force majeure clause in a contract subject to Chinese law. . . .