News
2003

How do arbitrators handle force majeure?

In the uncertainty of today’s world, force majeure is likely to be an increasingly frequent issue in contractual disputes. To help contracting parties make adequate provision for unforeseeable and unavoidable events beyond their control, ICC proposes a ready-made force majeure clause for inclusion by parties in their contracts. The newly devised clause adds terrorism to the list of events traditionally regarded as constituting force majeure.

ICC has also produced a clause on hardship providing for renegotiation of contracts that have become unbearably onerous upon one or other of the parties due to unforeseen circumstances. If in such situations the parties are unable to find a solution alone, they may of course refer to one of ICC’s dispute resolution services to break the deadlock.

The two new clauses will be presented and discussed at a special one-day conference at the ICC International Secretariat in Paris, France, on Tuesday 8 April 2003. Distinguished arbitrators and law professors, including Charles Debattista, draftsman-in-chief of the clauses, will comment on them and look at their practical applications.

Fabio Bortolotti will focus in particular on arbitrators’ approaches to force majeure. Referring to ICC cases in which principles on force majeure have been applied, he will consider whether there is a common approach amongst arbitrators. ‘Parties are interested in knowing how arbitrators handle force majeure’, said Professor Bortolotti, ‘and whether they can expect a practical, balanced approach.’

For full conference details click here.
Copies of ICC Publication 650 containing the new clauses and explanatory notes are available from the iccbooks.com  and ICC national committees.