In this VLOG Marcus takes a look at issues around Force Majeure and Frustrated Contracts Legislation.
What is Force Majeure?
Force Majeure is an unforeseeable or an event of circumstance that’s beyond the reasonable control of the parties.The most important thing to look at with your contracts is, do you have a well drafted Force Majeure clause? If you are currently in a situation where you can’t perform your contractual obligations, then it’s best to seek advise on that, see whether or not your clause sufficiently deals with the event of Coronavirus. If it does not, then we look at the NSW legislation which is the Frustrated Contracts Act.
What is the Frustrated Contracts Act?
The Frustrated Contacts Act looks at an unforeseeable circumstance where the parties can’t complete their contractual obligations, and it makes sure that each, or one of the parties doesn’t get some unjust enrichment. For example, if I’ve paid somebody a certain amount to complete a task, and they can’t complete it because of the Coronavirus, then whether or not I am obliged to give that money back. So, the act deals with these circumstances and ensuring that both parties are justly dealt with and compensated for these circumstances.
If you have any questions around Force Majeure or the Frustrated Contracts Act, please do not hesitate to contact us at Southern Waters Legal. What do you think? We would love to hear your thoughts! Feel free to submit your comments below or comment on our Facebook Page or LinkedIn.
