Force Majeure Events Research Articles

Force Majeure, Frustration and Impossibility: A Qualitative Empirical Analysis

A concluded contract may be rendered incapable of performance for a variety of reasons. The incapability of performance raises a variety of important legal questions: Is the claim of incapability acceptable to the counterparty? If not, does the claim meet the standards of force majeure and/or frustration? Does the contract between the parties address the grounds of incapability? Whether performance may be excused without the levy of damages? Towards that end, this report attempts to draw attention to the core issues in making and resisting a force majeure claim, key decisions of the Supreme Court that have settled the parameters of force majeure, frustration and impossibility and important advancements made by the High Courts. We also offer insights into allied issues in making a force majeure claim that have bearing on the timing, forum and terms on which a force majeure claim may be made. This report thereafter proceeds to offer empirical insights of the Supreme Court as well as 6 high courts – Delhi, Bombay, Madras, Karnataka, Allahabad and Calcutta. In presenting this information, we assemble a qualitative set of cases that have decided and applied the law on force majeure, frustration, and impossibility. We offer insights into the number of successful force majeure claims and common force majeure events.

El impacto de la pandemia del Covid-19 en los contratos de obra en la realidad peruana

A brand new panorama is presented in the world, due to the presence of the spread of COVID- 19 that has generated a new form of coexistence, the law has not been the exception to the transformations arising legal conflicts, specifically in the law of contracts, in regarding the work contract where the new behaviors of the subjects involved have affected, the peculiar breaches due to an event of force majeure that interrupts a normal development of a construction contract, which affects the termination of contracts, which it is the impact of the binding force and government restrictions or limits on workers, as well as the impact of state measures on construction contracts. Hence, the purpose of our study is to determine how the impact of the Covid-19 pandemic on construction contracts in Peruvian reality. It is a qualitative approach work, since it will use the methods of observation and analysis of texts.

Functional Aspects of the Development of International Tourism

The article is devoted to functional aspects of international tourism development. Substantial lagging in the functional provision of the development of the international tourism market has been established due to such negative aspects as the lack of planned measures, substantial accumulation of tourist flows, absence of relevant security of tourists, incompliance of infrastructure, illegal labor migration, and an increase in the number of force majeure events. All these factors make it necessary to expand a network of travel agencies so that they are able to cooperate with public authorities. It has been proven that international tourism has become a key segment of the modern global market, in the structure of which tourism services play a key role. The impressive scope of international tourism operations has been identified, spanning most countries of the world and drawing close attention to the problems related to the regulation of international tourism services at all levels (national, supranational, and global).

Coronavirus pandemic (COVID-19) as a force majeure event to fulfill contractual obligations

The peculiarities of the impact of the coronavirus pandemic on the consciousness of society, which led to a change in the structures in civil law agreements, have been studied. N ow 2020 is an influential year for big and small businesses, when assessing force majeure, the fulfillment of obligations makes it impossible to act. Pandemic COVID - 19, as a story that will be remembered by everyone from the general population to the leaders, so this article is relevant for comparing civil law contracts at different stages of its existence. Over to force majeure on the territory of Ukraine, the Law "On Amendments to Certain Legislative Acts of Ukraine Aimed at Providing Additional Social and Economic Guarantees in Connection with the Spread of Coronavirus Disease (COVID-19)" was adopted. Force majeure circumstances are extraordinary and unavoidable circumstances that objectively make it impossible to fulfill the obligations under the terms of the agreement (contract, agreement, etc.), obligations under laws and regulations. Force majeure includes various circumstances, including epidemics, the introduction of curfews, mass riots, long breaks in transport, emergencies, restrictions by public authorities, etc. At such a difficult time, we have an important mission to comply with legal rules and world recommendations regarding health care, but we should not forget about fulfilling the obligations established by contract or law. Today we are in a quarantine situation, due to which the majority has lost the opportunity to earn money, which leads to non-fulfillment of civil obligations. The state is trying to make even minimal, but improvements for the public good. The adopted temporary amendments to the laws and by-laws concerning civil law are successful and useful. The new law also regulates other areas and issues, namely: support for the unemployed in quarantine; weakening the tax on enterprises; temporary simplification of production and procedures for their purchase necessary to combat the spread of coronavirus; introduction of remote work and education; support of the employer and the employee in the conditions of quarantine; implementation of social benefits.

Force majeure events as a factor encouraging the extensive distance employment at enterprises

Subject. This article discusses the issues related to the distance employment of workers. Objectives. The article aims to highlight the issue of business transition to a distance operation option during force majeure events in the world economy. Methods. For the study, I used a statistical analysis. Results. The article offers certain recommendations to extend distance employment and presents two models for its development in the post-crisis environment. Conclusions. A widespread model of social and labor relations on the principle of distance-based cooperation and communication can be used extensively both in force majeure circumstances and during the normal functioning of economic systems. The proposed model of spatial allocation of economic resources would help maintain the resilience of enterprises to force majeure. However, this would involve changes in the behavioral patterns of workers.

Does the COVID-19 Outbreak Constitute a Force Majeure Event? A Pandemic Impact on Construction Contracts

The emergence of novel coronavirus disease 2019 (COVID-19) at the end of 2019 has transformed from an epidemic to a pandemic disaster. As of 12 April 2020, this outbreak has spread to more than 210 countries and territories and caused 108,837 deaths. The development of this outbreak has resulted in the closure of several major cities in the world (such as Wuhan, Daegu, and Manila) to country-wide lockdowns as observed in Italy and Malaysia. This also affects the construction sector as a labor-intensive industry. Force majeure has become one of the critical points of discussion, considering that this provision allows a contract party to hinder from fulfilling its obligations on the grounds that events are beyond a party’s control. Nevertheless, the application of this provision often faces challenges considering that in prior legal cases, the Courts tend to interpret this clause narrowly. Thus, it would be problematic when the force majeure clause does not include an epidemic outbreak as a force majeure event in the contract. This paper aims to explore the potential of the COVID-19 outbreak as a force majeure event in construction contracts. A qualitative approach consisting of two-step interdependent methods was done to highlight the fundamental elements of force majeure and to analyze whether the COVID-19 outbreak constitutes a force majeure event or not. Finally, a decision model was developed to assist the contracting parties in determining the COVID-19 outbreak potential as a force majeure event. This paper contributes since research related to the impacts of epidemic or pandemic outbreaks on the construction industry has not been intensified.

Risk Sharing of Political Force Majeure in PPP Projects in The Belt and Road

This paper identifies 12 political force majeure events through analysis the documents and literatures, and then classifies 8 key events. It is found that the risk allocation of most events is inconsistent by comparing and analyzing the risk allocation results of key events. This paper concludes that the risk allocation should be determined according to the specific circumstances on the basis of following the basic principles.

Contracts for the provision of state in relation to COVID-19 in Colombia

Profession service provision contracts are a form of direct public procurement that can only be suspended by force majeure, fortuitous event or public interest. In this sense, being the COVID-19 a pandemic that has the qualities to be considered an event of force majeure, the content of Legislative Decree No. 491 of 2020 was interpreted, through which it was decided on the suspension of the contracts for the provision of state services, finding that it complies with article 95 contained in the Political Charter of 1991, which refers to the principle of solidarity, which merits its application to ward off the public health crisis dueto the Coronavirus in light of fundamental, economic and social rights, such as life, human dignity, the vital minimum, health and work. DOI: http://dx.doi.org/10.21017/Rev.Repub.2020.v28.a83

Când debitorul nu mai poate să plătească: Urgența în contractele de servicii (bancare)

"The recent medical crisis triggered by the SARS Cov-2 virus reopened the public debate on the effects force majeure has upon the (performance by the parties of the) contractual obligations. Aside of (re)discovering the legal conditions required for an event to be qualified as force majeure, the legal issues raised by the effects of such event were more urgent. The fact that the Government passed special (albeit temporary) regulations seemingly altering the general rules added to the complexity of the analysis. In this paper we tried to capture those elements that are specific to the effects a force majeure event has on the performance of the banking services agreement. We focused on the various forms of banking credit operations as well as on some forms of deposit of funds. We noticed that the effect of the force majeure can be much flattened (until it can be mostly ignored) when the subject matter of the contract concerns (amounts of money) looked at as essentially fungible goods."

Интерактивные образовательные системы в условиях электронного и смешанного обучения

The article considers and analyzes issues related to the problems of organizing e-learning, the use of distance learning technologies in organizing the educational process in the extreme conditions of the period of self-isolation in 2020. On the basis of the sociological survey of pupils and teachers the article defines the readiness of the educational organizations, teachers trained to use information technologies in the course of remote/e-Learning in the event of unforeseen force majeure and insuperable circumstances.

АНАЛИЗ ТЕХНИЧЕСКИХ ОТКАЗОВ НА ПРОМЫСЛОВЫХ СУДАХ В ДАЛЬНЕВОСТОЧНОМ РЕГИОНЕ

The article focuses on the main factors influencing the safety of navigation, such as natural factors, man-made impact, depreciation aspect, operational impact and human factor. The analysis of marine accidents in the far East region determined the value of its technical component. The statistics of the machinery failures on fishing vessels is given. One out of ten accidents has been stated to occur as a result of force majeure events, three quarters of the accidents are related to the human factor in the form of personnel erroneous actions, the rest happen due to technical imperfection of the ships. The chart shows the distribution of accidents by years due to failures and breakdowns of ship technical equipment given in percentage figures. Breakdowns of the main engines, auxiliary mechanisms and their elements, including their systems, annually make up 33.9 - 40.7% of the total number of accidents. Characteristic failures of ship technical equipment are: breakdowns of the main engines, auxiliary diesel generators, auxiliary mechanisms, electrical equipment, screw-steering complex with the shaft line, automation systems. Statistics of the causes of breakdowns of propulsion plant, auxiliaries, main systems and their elements is proportional to the data of similar studies. An attempt has been made to evaluate the importance of the operator-machine link at all levels of responsibility for coastal personnel and ship crews. The impact on the man-machine link in the whole chain of operation of the vessel is important; thus, there was set a task to carry out a quantitative investigation of the reliability of this link. In terms of the ergotechnical component of the fishing fleet operation there has been substantiated the necessity of developing measures (technical, economic, informational, legal) to improve the quality of the vessel activity.

Analysis of the operating conditions of mobile composite airfield pavements

Safety maintenance is a key and essential condition for flight operations performance by aircraft. It refers to all functional elements of an airport, i.e. runways, taxiways and aprons, as part of the movement area at civil, as well as military airports. Airfield pavements, likewise the aircraft and technical personnel of ground control directly affecting the safety of flight operations, are the integral part of each functional element of an airport. Airports in the event of force majeure, critical events and foremost, in the event of war threat are the facilities that would be the first objects to focus on. As a result, airfield pavements constructions would be destroyed and require quick reconstruction that guarantee its restoration of operational readiness and safety conditions for operating aircraft. Existing technology and methods of airfield pavement reconstruction could not meet the stringent time requirements of military operations, that is why mobile, composite airfield mats have been developed. In the paper, operational and maintenance advantages of the elastic, mobile airfield mat ELP-1 KRATER manufactured by Shipyard Żuławy are shown. There is presented the computational model of composite pavement which co-operates with subbase and also shown are the results of field tests, performed by the Air Force Institute of Technology. Moreover, there are presented the results of load-bearing capacity of the composite airfield mat ELP-1 KRATER received during field tests.

Foreign Investments in Disputed Maritime Zones: Maritime Disputes as Force Majeure Events in International Law and International Investment Contracts

Sovereign rights in Exclusive economic zones and Continental shelves are functionally limited to the economic exploitation of these zones. Moreover, in the case of disputed maritime zones these sovereign rights are neither exclusive nor necessarily constant. Nevertheless, states are still expected to provide the investments established in these zones the same treatment they should provide in their territories where they exercise full and constant sovereignty. If a host state agrees to the establishment of an investment in a maritime zone that become later contested, do the occurrence of the contestation and the hazards arising from such contestation relief the host state from its contractual and treaty obligations toward the investment by virtue of the force majeure concept. This paper argues that a traditional interpretation of the force majeure concept in respect of investment agreements and contracts, hampers states ability to de-escalate their maritime disputes, diminishes its capacity to conclude delimitation agreements and reduces the promotion of the UNCLOS III as well as its mechanisms for disputes settlement. It proposes a contextualist interpretation of the force majeure concept that is adapted to the exploitation of disputed maritime zones and states obligations under the international law of the sea. First, it examines the concept of force majeure as a doc-trinal hypothesis and its applications in international contracts and international in-vestment agreements. Second, it analyzes the legal act of maritime contestation as a force majeure event according to the possible interpretations of the concept of “force majeure”. Finally, it examines the recurrent legal implications susceptible of arising out of a contestation; provisional orders and unfavorable delimitation and their qualifica-tion as a force majeure event in the realm of investment agreements and contract.

Making a Case for Creating Living Labs for Aging-in-Place: Enabling Socially Innovative Models for Experimentation and Complementary Economies.

Aging is continuously depicted as a force majeure event despite clear and robust premonitions of its coming. However, such depiction serves to justify the unpreparedness and inadequacy of policies manifesting in loneliness and isolation, unsatisfied demands in health and social care, lack of suitably inclusive residential and social facilities, and inequitable access to support and services. Recent years have seen an increase in social innovation that involves alternative transaction models, such as time-banks and circular economies. These initiatives represent collective responses to changes and challenges such as aging by identifying and innovatively capturing and exchanging locally- and freely- available assets with the intent to fulfill economic needs (more affordable goods and services), social ambitions (skills development and exchange, repurposing space, social inclusion, and cohesion) environmental aspirations (up-cycle) and psychological needs (sense of purpose, identity, belonging, recognition). Whilst it is often assumed that ad hoc measures are appropriate to resolve the challenges posed by an aging demographic, the learnt assumption that underpins this work is that aging is a systemic issue and ought to be understood, and resolved, in its context, not by producing niche- relevant policy and interventions, but considering the impacts it has on the whole society. Henceforth it is proposed that truly transformative social innovation for the aging population must consider and resolve the challenges of communities as these are where older adults can stay relevant socially and, in the presented approach, also economically. Through the review of four international case studies, a framework with four cornerstones has emerged. This includes the changing role of local and central governments, the models of value creation, co-creation mechanisms, and finally, technology, especially digital social currency. The concurrent presence of the four factors in the framework is not always a requirement for social innovation to emerge and flourish. However, the presented analysis suggests that all four themes have an impact even when not being direct agents of social innovation. The authors conclude by making a case for developing Living Labs for Aging-in-Place, to experiment and study proposed solutions for systemic challenges facing the aging population, grounded in community-led schemes.

Force majeure events and stock market reactions in Ukraine

This paper examines reactions in the Ukrainian stock market to force majeure events, which are divided into four groups: economic force majeure, social force majeure, terrorist acts, natural and technological disasters. More specifically, using daily data for the main Ukrainian stock market index (namely PFTS) over the period from January 1, to December 31, 2018 this study investigates whether or not force majeure events create (temporary) inefficiencies and there exist profitable trading strategies based on exploiting them. For this purpose, cumulative abnormal returns and trading simulation approaches are used in addition to Student’s t-tests. The results suggest that the Ukrainian stock market absorbs new information rather fast. Negative returns in most cases are observed only on the day of the event. The only exception is technological disasters, the market needing up to ten days to react fully in this case. Despite the presence of a detectable pattern in price behavior after force majeure events (namely, a price decrease on the day of the event) no profitable trading strategies based on it are found as their outcomes do not differ from those generated by random trading.

Force Majeure Events And Stock Market Reactions In Ukraine

This paper examines reactions in the Ukrainian stock market to force majeure events, which are divided into four groups: economic force majeure, social force majeure and terrorist acts, natural and technological disasters. More specifically, using daily data for the main Ukrainian stock market index (namely PFTS) over the period 01.01.1997-31.12.2018 this study investigates whether or not force majeure events create (temporary) inefficiencies and there exist profitable trading strategies based on exploiting them. For this purpose cumulative abnormal returns and trading simulation approaches are used in addition to Student’s t-tests. The results suggest that the Ukrainian stock market absorbs new information rather fast. Negative returns in most cases are observed only on the day of the event. The only exception is technological disasters, the market needing up to ten days to react fully in this case. Despite the presence of a detectable pattern in price behaviour after force majeure events (namely, a price decrease on the day of the event) no profitable trading strategies based on it are found as their outcomes do not differ from those generated by random trading.

Economic and Socio-political Force Majeure: a Study of the Ukrainian Stock Market Reaction

The paper analyzes the reactions on the Ukrainian stock market to force majeure events of an economic and socio-political nature. Unforeseen events are regards as force majeure events, which can not be taken into account in the value of assets in the stock market in advance. It has been established that, as a result, conditions for obtaining anomalous profit market participants may be created, until information on force majeure will be absorbed by the stock market. In this context, force majeure is seen as an anomaly of the hypothesis of effective markets. Among the most significant economic events, a number of corporate bankruptcies and cyberattacks were taken into account, and among socio-political force majeures – revolutionary, military-political events and terrorist acts. On the basis of daily data for the main index of the stock market of Ukraine (PFTS) for the period from 01.01.1997 to 31.12.2018, a hypothesis was checked regarding whether or not the force majeure events create temporary market anomalies and whether there are profitable trading strategies based on their use. The methodological basis for testing was not only the traditional t-criterion of the Student (as a hypothesis test method) but also cumulative accumulated income methods as one of the methods of studying events and trading simulations. According to the results of the audit, the Ukrainian stock market reacts very quickly to economic and socio-political force majeures and absorbs information about them. Negative profitability of the PFTS index was observed only on the day of the occurrence of a force majeure event. Despite the existence of the revealed model of the stock market reaction to force majeure events (namely, price reduction on the day of the event), it is not possible to build profitable trading strategies based on this model, since the results of simulation of these strategies do not differ from those generated random trade. Key words: stock market, force majeure event, event study.

Konsep Force Majeure Dalam Akad Murabahah Dan Implementasinya Pada Lembaga Keuangan Syariah

This study aims to determine and analyze the position of force majeure in murabahah contracts and how the implementation of force majeure in murabahah contracts in Sharia Financial Institutions. This study uses normative legal research supported by empirical data. Data collection techniques used by the author is the study of literature documents that are examined from books, literature, journals, and legislation. The conclusion of this research is first, the position of force majeure in the murabahah contract is a necessity to anticipate unwanted and dangerous circumstances, which are beyond the authority of the parties in the murabahah contract. In addition, Islamic law also regulates positions related to force majeure that is known as dharurah, which means damaging or giving harm. Second, the implementation of force majeure in the murabahah contract at the Sharia Financial Institution has already been applied in the contract or agreement by the parties. Force majeure clause becomes a reason not to charge the parties for losses arising from force majeure events that occur. Something that is allowed due to dharurah conditions, must be completed according to the required size restrictions.

Airfield pavements on the lake ice sheets

The article presents theoretical notions concerning possibility of using the lake ice sheets for performing potential flight operations. Theoretical discourse was verified ,,in situ" on national reservoirs in the warminsko- mazurski region. Presented complex of issues and final conclusions allow applying aforementioned areas for flight operations in event of force majeure.

EXPLORING SUPPLY CHAIN RISKS AMONG MALAYSIAN AUTOMOTIVE SMES

There is scant evidence pertaining to risks faced by Malaysian automotive SMEs, although many researches have been conducted in other countries. For that reason, this paper aims to explore supply chain risks experienced by Malaysian automotive companies. By using a case study method involving three Malaysian automotive SMEs, the data analysis reveals that Malaysian automotive SMEs are mostly affected by risks external to firm but internal to supply chain, particularly the risk of late delivery and part shortages. With respect to risk internal to firm, all three case companies admitted that human-related risk is putting pressure on them. The risks of force majeure events and government regulation emerge as the most common risks external to Malaysian automotive SME’s supply chains. Although the results of this study are limited due to the small number of case companies investigated, they suggested automotive SMEs to implement multi-sourcing or develop closer relationship with sister companies and supply chain members to manage supply chain risks.