The concept of Force Majeure

The concept of Force Majeure refers to an unforeseeable event that could not have been contemplated when an agreement was originally entered into.

In the current environment, it is possible that the concept of Force Majeure could apply where a contractual agreement is no longer able to be adhered to as a result of the Coronavirus. For example, there may be various contracts (including commercial leases) that cannot be adhered to as a result of the Federal Government’s lockdown of all non-essential businesses.

In these times of uncertainty, we would encourage our clients to seek legal advice on whether any of their contractual arrangements contain Force Majeure clauses in them, and if so, how the Force Majeure clause could be applied to provide relief from the terms of their contractual arrangements.

If you have any further questions, please do not hesitate to contact your client service partner at Banks Group on (03) 9810 0700.

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