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‘force majeure’ a good first resort or a bad last resort

COVID19 has caused many small business owners to encounter problems beyond their control. Typical examples include relationships with customers being damaged due to suppliers being unable to fulfil their orders. This can have the knock-on effect of customers seeking to cancel agreements, or terminate contracts because of their own financial and operational difficulties.

I came across this great option for small business owners to protect themselves during this pandemic. Force majeure event clauses are included within the terms and conditions of a contract and often very little attention is paid to the paragraph. However, when used properly, it may set up a clean escape to avoid damages claims. Force majeure event clauses in contracts avoid the consequences of a breach of contract caused by events outside the parties' control which delays, hinder or prevent performance.

Always consult an experienced, qualified legal representative before acting on any contract terms. For more information on 'force majeure' please read the following with comments from Jeremy Parkin:

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