Force Majeure

Yes.  Strike is covered under the force majure clause and hence the main contractor can invoke the clause and seek extension of time.

Dear Krishna,

Thanks for the quick response. Since the Subcontractor is not specifically covered, I had a doubt whether  the main contractor can claim. Kindly throw some light on this..

If your supply contract with the main contractor has any clause restricting the main contractor from engaging any sub contractor then in such case the main contractor has no right to take shelter under the force majure clause.

But in the absence of any clause forbidding the main contractor to engage a sub contractor the main contractor is entitled to invoke the force majure clause.

It is always not necessary that there should be a specific mention about the sub contractor in the force majure clause.  Force majure clauses have to be interpreted liberally in contracts.

If it had been agreed by your company that main contractor can engage sub contractor (either express or implied) the main contractor can invoke the force majure clause in situations of this kind.

The requirements of Force-Majeure are:

(a) It must proceed from a cause not brought about by the defaulting party’s default.
(b) The cause must be inevitable and unforeseeable.
(c) The cause must make execution of the contract wholly impossible.

If your main contractor satisfies the above three ingredients then he is entitled to invoke force majeure clause.

Thanks for elaborating on that.

1. Are these 3 requirements stated in any law or in any judgement pronounced  by any court ?

Also in case if you are having some case laws for this , please refer the same.

Thanks .

Force Majeure does not apply in this case. The contractor could've changed the supplier. this is no ground to avoid obligations under the contract unless it specified that supply had to be from that particular supplier or that the supplier was the only person manufacturing such goods.

Dear MR. Chanchal Nag,

Thanks for logging in & posting a reply.   Kindly also clarify on the following :

1. The Force majeure clause have to be intrepretted liberally in contracts.

2. Also in case if you have some case laws , kindly provide the links / URL .

hi,

Does Force Majeure applies when main company fails to pay to Vendor and in absence of sufficient funds its not possible to run operations?

Thanks

Strike in force majeure clause does not include the strike in the premises of the Contractor. It includes only those happenings which are not in the control of Contractor. Since the working in plant is under the direct control of the contractor, Strike can not be covered under this clause.

Dear Hariharan,

You are concerned only with the strike at the contractor's premises by workers, BUT NOT with the strike at sub-cobtractor's premises, unless your contract agreement specifically allows sub-contract by the contractor.