FORCE MAJEURE AND HARDSHIP MODEL CLAUSES PUBLISHED BY THE INTERNATIONAL CHAMBER OF COMMERCE

Abstract

In today’s global economy a high level of legal certainty and predictability of commercial relations is required, due to the large number and speed of contracting and execution. International trade requires a clear but also flexible system of legal rules that allow smooth functioning of the flow of goods and services. Traders from different countries bring with them individual trade practices and norms of national legislation that are often diametrically opposed, and sometimes legal institutes that are regulated in one country don’t even exist in another. This is the case with the institutes of force majeure and hardship. Due to the large differences in the regulation of these two institutes in national legal systems there have been attempts of standardization and creation of a unified system of exemption from liability for non-performance due to force majeure or changed circumstances. Similarly to national legislation the sources of uniform law contain inconsistencies in the standardization of these institutes. Due to this situation, the participants in international trade often decide to incorporate the force majeure and hardship clauses into their contracts. Renowned international organizations, such as the International Chamber of Commerce, have set up their system of model contract clauses in order to ensure equity, legal certainty and fairness. This paper deals with the position of force majeure and hardship model clauses, published by the International Chamber of Commerce, in the international legal system, with reference to problems in uniform sources of commercial law.