By Jacque Rupert, Avalution Consulting
Originally posted on Avalution Consulting’s Blog
We see a lot of confusion specific to the topic of force majeure. Often, executive management has the belief that force majeure clauses in their contracts protect them from a wide variety of disruptive events, and thus they may not invest appropriately in business continuity plans and strategies. However, the concept of force majeure is somewhat convoluted and often includes many variables. As a result, if an organization does not plan appropriately, it may actually be left unprotected and vulnerable to claims of breach of contract in the event of a disruption.
This article explores the history of force majeure and its current state application in contract law. Avalution developed this perspective to help inform organizations about the potential issues associated with force majeure clauses and the need for additional preparedness activities to adequately protect the organization in the event of a disruptive incident. However, please keep in mind that we are not lawyers, and nothing in this article should be construed as legal advice (be sure to consult with legal counsel regarding this topic and appropriately balance contractual protections with business continuity planning strategies)....