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Jayanta (Service)     06 August 2008

Query on Forece Majures

whether plant closure forms an integral part of admissible ground in enforcing the force majures in international trades?

Procedures of High Seas Buy :: customs clearance?


Regards,

Jayanta
6.8.08


Learning

 2 Replies

Jaydeep Kurup (ACS, LLB)     07 August 2008

Normally in most of the agreements, parties define Force Majeure as to what constitutes force majeure. This definition will guide the parties in case of an interpretation.


In case any party feels any particular threat can derail the agreement, the it would be prudent to include the said risk as a force majeure.


However it should be noted that force majeure is normally for act of god. So a voluntary plant closure not arising out of any major accident may be difficult to be pursued as a force majeure event.


 


 

Manish Singh (Advocate)     07 August 2008

Certainly not.




 


plant closure does not come under the term force majeure and it can never be included under that.




 


force majeure applies only to the extent of that situtation which goes out of the hands of the parties to the contract and make the contract in a state which can not be executed for that particular period or for the rest of the period.


but if ithe closure is done by some natural calamities or govt act or so, as the case may be and where the plant was an integral part of the contract, the contract can be concluded in the said situation.


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