From Coronations to Sand Bans: Frustration and Force Majeure in the Twenty-first Century
From the middle of 2008 through the second quarter of 2011natural, economic and political events have had unusual and unexpected effectson a wide range of commercial transactions. Consider the following: - Thefinancial collapse of 2008-09 which was especially difficult in North Americaand Europe, and which continues to affect financial markets. - The worldwiderecession that followed the financial collapse. - Droughts and floods in anumber of important areas of agricultural production. - A volcanic eruption inIceland that shut down the skies over Europe for commercial aviation (andothers in Indonesia and Chile with similar effects in areas of somewhat lessheavy traffic). - Earthquakes in New Zealand and Japan and a terrible tsunamiin Japan. - Damage to a nuclear power plant in Japan that resulted in thedispersal of radiation over a large area. - Political unrest which led togovernmental changes in Tunisia and Egypt. - Unrest and a civil war in Libyawith resulting disruption to Libyan oil production. - Continuing unrest inBahrain which may affect capital markets in the region and unrest in Syria andYemen which could have far-reaching effects on the region.The article covers: Consideration of whether common lawdoctrine of frustration is sufficiently flexible. Discussion about whethermore careful drafting of force majeure clauses better approach than insertinglanguage insufficiently tailored to particular transaction. Examination ofrelevant decisions of Court of Appeal of Singapore and assessment that casescould be useful models for other common law jurisdictions.
Contracts, Terms and conditions, Legal drafting, Force majeure clauses
Commercial Law | Contracts
Journal of Contract Law
Elsevier Science B.V., Amsterdam.
From Coronations to Sand Bans: Frustration and Force Majeure in the Twenty-first Century. (2011). Journal of Contract Law. 28, (1/2), 61-77. Research Collection School Of Law.
Available at: http://ink.library.smu.edu.sg/sol_research/2125