Consequences Of A Wrong Force Majeure Claim

On the flip side, there are also consequences when one wrongly calls a force majeure event. One major effect is that it could trigger termination rights. Failure to perform a material obligation under the contract without excuse may permit the innocent party to seek to terminate the contract. Likewise, at common law, failure to perform your contractual obligations which go to the root of the contract could allow the counterparty to terminate for repudiatory breach and sue for damages.

It could also lead to late performance. Even if the innocent party does not have a right to terminate the contract as a result of you incorrectly calling force majeure, there may be other consequences arising from your late performance such as damages for breach of contract or self-help remedies including liquidated damages, acceleration, forfeiture, etc.

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