Force Majeure Clause Drafting for Cross-Border Contracts

Q: What should a force majeure clause include?

Definition of qualifying events, causation standard, notice and mitigation duties, effect on payment and delivery obligations, and whether alternative performance must be accepted.

Q: How does MUR Shipping v RTI relate to force majeure drafting?

It illustrates reasonable endeavours and alternative performance when sanctions affect payment currency — a common gap in boilerplate force majeure clauses.

Force majeure clauses allocate risk when performance becomes difficult or impossible. Good drafting goes beyond event lists — it defines causation, notice, mitigation and what happens to payment when sanctions or logistics fail.

MUR Shipping case study Simulator exercise Analyse your clause

Why force majeure matters commercially

Pandemics, wars, sanctions, port closures and banking restrictions show that "act of God" lists age quickly. Cross-border contracts need clauses that connect to governing law, hardship, termination and insurance — not isolated boilerplate in section 27.

Core drafting elements

Defined events vs open-ended "beyond reasonable control"
Causation: prevention vs hindrance vs increased cost
Notice timelines and continuing updates
Mitigation and reasonable endeavours
Effect on payment, delivery and acceptance of substitute performance
Termination rights after prolonged FM
Interaction with sanctions and illegality clauses

Teaching case: MUR Shipping v RTI

Use MUR Shipping v RTI to discuss whether reasonable endeavours require accepting payment in a non-contractual currency when sanctions block the agreed route. Students draft revised FM and payment clauses after role-play.

Classroom exercise

Give students a one-page supply agreement with a generic force majeure paragraph. Ask them to redraft for: (1) EU/US sanctions on a banking corridor; (2) partial port closure; (3) 40% cost increase without physical impossibility. Compare civil law "hardship" traditions with common law FM analysis.

Simulator and contract review

The Academy simulator adjusts FM triggers and maps risk signals. For real contracts, ContractBot scan can preview force majeure, sanctions and payment clauses in uploaded agreements.

FAQ

What should a force majeure clause include?

Events, causation, notice, mitigation, payment/delivery effects, and termination after prolonged impossibility.

How does MUR Shipping v RTI relate to force majeure drafting?

It tests reasonable endeavours and alternative performance when sanctions affect contract currency payment.

Educational topic guide only. Not legal advice.