Force Majeure Events Enable a seller to Avoid his Contractual Obligations without Paying a Compensation or Penalty

Force Majeure Overview

• Force Majeure is an event that can be neither anticipated nor reduced to control,e.g., an industrial strike that leads to loss of profits.
• Force majeure events enable a seller to avoid his contractual obligations without paying a compensation or penalty.
• Force majeure events include certain natural disasters such as fire, flood, storm, heavy show, earthquake, and social disturbances like war, strike, sanctions,etc.

Force Majeure Clause In Contract

• In case of delayed shipment or non-delivery due to a generally recognized force majeure, the seller must advise the buyer immediately, and within 15 days thereafter the seller must airmail to the buyer a certificate of the incident issued by the competent government authorities or Chamber of Commerce at the place where the incident occurred. The seller shall not be absolved from his responsibility unless such an incident is acknowledged by the buyer.




• In case conditions of force majeure continue to lase over and above 30 days, the buyer shall have the right to cancel the contract. The seller's failure to obtain an export license shall not be considered as force majeure.