Sanctions and Force Majeure from an English Law Perspective
Published 14 February 2024
Abstract
Economic and trade sanctions are designed to disrupt trade and commerce and their imposition during the term of a contract will often require parties to reevaluate their ability to continue to perform their contractual obligations. When sanctions bite, parties often seek to excuse this non-performance by relying on a force majeure clause, which are commonplace in most contracts and are often broadly drafted to encompass sanctions imposed by government authorities. While force majeure clauses are typically drafted in relatively simple terms, there are several aspects of these clauses that may prove to be a pitfall for the unwary litigant. Furthermore, ambiguity in sanctions legislation can lead to disputes over whether a force majeure clause was validly invoked. This article seeks to examine the anatomy of a force majeure clause and considers the approach of the English courts to the application of force majeure in the context of sanctions.
This paper will be part of the TDM Special Issue on "Sanctions and International Arbitration: Impact on Substantive and Procedural Issues". More information here www.transnational-dispute-management.com/news.asp?key=1960