What is a force majeure event? Are storms and floods a force majeure event?

Force majeure event is an important legal concept in contract performance. This is an objective event that is unpredictable and cannot be overcome even if all necessary measures are applied. The Civil Code 2015 specifically regulates force majeure events and their legal consequences. This article will analyze this concept in detail, how to apply it in practice, and compare it with “fundamentally changing circumstances”.

What is a force majeure event?

Force majeure is an important legal concept in contract law. Clause 1, Article 156 of the Civil Code 2015  defines a force majeure event as an objective event that is unpredictable and cannot be overcome despite the application of all necessary and possible measures. permission.

To be considered a force majeure event, an event must meet three factors:

1. Objectivity: The event must occur objectively, beyond the control of the parties.
2. Unforeseeable: The parties cannot predict the event that will occur at the time of entering into the contract.
3. Unable to overcome: Even though all necessary and possible measures have been applied, the parties still cannot prevent or limit the consequences of the event.

Some typical examples of force majeure events include: natural disasters such as storms, floods and earthquakes; large-scale epidemics; war; large-scale strikes; Decisions of competent state agencies prohibiting the export or import of goods.

Are storms and floods a force majeure event?

Storms and floods are often considered force majeure events in many cases. However, to determine whether a storm or flood is a force majeure event or not, it is necessary to specifically evaluate based on 3 criteria:

1. Objectivity: Storms and floods are natural phenomena, occurring unexpectedly by humans. This is an objective factor beyond the control of the parties to the contract.
2. Unpredictable: Although it is possible to forecast the weather, accurately predicting the time, intensity and scope of impact of storms and floods is very difficult, especially when entering into contracts.
3. Irreparable: When storms and floods occur with great intensity, even if preventive measures are applied, damage can still occur out of control.

However, not all cases of storms and floods are considered force majeure events. If storms and floods occur frequently, can be predicted in advance, and the parties can apply effective preventive measures, they may not be considered force majeure events.

How is a force majeure event regulated in a contract?

When drafting a contract, the parties should specifically stipulate force majeure events to avoid future disputes. Some things to keep in mind when stipulating force majeure events in contracts:

1. Definition of force majeure events: The criteria for determining force majeure events should be clearly stated, and a number of specific cases considered to be force majeure events should be listed.
2. Notification obligation: Clearly stipulate the time limit and method of notification when a force majeure event occurs. The affected party must immediately notify the other party of the force majeure event and its possible consequences.
3. Exemption from liability: Clearly states the exemption from liability for the party that cannot perform its obligations due to a force majeure event. However, it is necessary to stipulate that the party still has the obligation to minimize damages.
4. Extending the contract performance period: Regulating the extension of the contract performance period corresponding to the time the force majeure event occurs.
5. Contract termination: If a force majeure event lasts beyond a certain period, the parties can agree on the right to terminate the contract.

Consulting services on applying force majeure clauses when encountering storms and floods in Long Phan

At Long Phan, we provide professional consulting services on applying force majeure clauses in the event of storms and floods. Our team of experienced experts will assist customers with the following issues:

1. Situation assessment: Specific analysis to determine whether storms and floods can be considered force majeure events in your case or not.
2. Review contracts: Check the provisions related to force majeure events in your existing contracts.
3. Procedure consultation: Guide customers on the steps to take when applying force majeure clauses, including notifying partners and collecting evidence.
4. Negotiation with partners: Support customers in the process of negotiating with partners on the application of force majeure clauses, including extending contract performance time or adjusting other terms.
5. In case of a dispute, we will represent you as an authorized representative during the negotiation and mediation process.

Force majeure events are a complicated issue in contract performance. For detailed advice on applying force majeure clauses when encountering storms and floods, please contact Long Phan via hotline. 0906735386. Our team of experts is ready to assist customers in protecting their legal rights in all situations.