FORCE MAJEURE CONTRACT CLAUSES

With the current uncertainty in relation to the war in Iran, GPA wanted to highlight potential contract clauses that may come into play for our members. 

In particular, a ‘Force Majeure’ refers to a specific clause in a contract which accounts for unforeseen events.  

The term ‘Force Majeure’ is French for ‘major force’ and speaks to an event beyond any person’s control that can hinder the performance of a contract.  

The intent of such a clause is to protect contracting parties in the case that such an event occurs. 

The drafting of this type of clause will vary between contracts, however common examples of unforeseen events include war, fires, riots, forced business closures, pandemics, and cyclones.  

A Force Majeure clause must also define certain details such as what happens to each party’s obligations during that event and set out a process (like notice requirements and mitigation steps). 

The best thing you can do as a grower is to be aware of the details of such clauses in your contracts and seek legal advice where and when you may require it.