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April 29, 2011

What Counts as a Force Majeure Event

Bangkok Post, Corporate Counsellor Column

Unexpected, uncontrollable events have dominated news headlines of late, such as the recent volcano eruption in Iceland, an earthquake in China, and political unrest in Bangkok.  These types of events can continue into the unforeseeable future, leaving people to wonder when they will end.  Each event undoubtedly caused tremendous loss and damage, thus raising important legal questions: Do these events constitute force majeure? And under what circumstances is it possible for a party to be held responsible for obligations stemming from these events? This article examines the relevant legal provisions on force majeure.