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When force majeure has not been provided for in the contract (or the relevant event does not fall within the scope of the force majeure clause), and a supervening event prevents performance, it will be a breach of contract. The law of frustration will be the sole remaining course available to the party in default to end the contract.
The first mention of a hell or high water clause in United States case law was in the February 2, 1960, case of Matits vs. Nationwide Mutual Insurance Co. In that case, Nationwide sought to deny insurance coverage to a woman who loaned her car to a friend, after the friend got into a collision.
A force majeure clause is designed to protect against failures to perform contractual obligations caused by unavoidable events beyond a party’s control, such as natural disasters. Force majeure clauses are primarily used to identify circumstances in which performance of contract may be forgiven. [6] An example:
Often spoken of interchangeably as "act of God" provisions, force majeure clauses can free both parties in a contract from obligation or liability in circumstances beyond either party's control.
The distinction between the 'common mistake' and the 'mutual mistake' is important. Another breakdown in contract law divides mistakes into four traditional categories: unilateral mistake, mutual mistake, mistranscription, and misunderstanding. [1] The law of mistake in any given contract is governed by the law governing the contract.
A force majeure clause is a contract clause that allows parties to be free of liability and obligation in the event that an extraordinary capacity event beyond the parties control occurs. There has been much debate regarding whether or not COVID-19 is considered an extraordinary capacity event that would be covered by the force majeure clause ...
In legal usage in the English-speaking world, an act of God, act of nature, or damnum fatale ("loss arising from inevitable accident") is an event caused by no direct human action (e.g. severe or extreme weather and other natural disasters) for which individual persons are not responsible and cannot be held legally liable for loss of life, injury, or property damage.
Clausula rebus sic stantibus comes from Latin (where rebus sic stantibus is Latin for "with things thus standing" or, more idiomatically, "as things stand").. A key figure in the formulation of clausula rebus sic stantibus was the Italian jurist Scipione Gentili (1563–1616), who is generally credited for coining the maxim omnis conventio intelligitur rebus sic stantibus ('every convention is ...