The Legal Impacts of the Force Majeure Clause on the Supply Chain Resilience in Response to Unexpected Disruptions

ABSTRACT: The force majeure clause is a contractual term, inserted or incorporated in the supply chain contract, to allow the contracting parties to renegotiate the contract, for the purpose of the suspension, modification and adjustment of the contract, during the occurrence of the supply chain disruptions, rather than its complete termination. This clause, known also as the renegotiating term, plays a considerable role during the occurrence of the supply chain disruptions, in order to perform the proactive plans which, facilitate the supply chain resilience and minimize the effects of risks and damage brought about by disruptions. The problematization of the research is represented by some questions, the most important of which is: How can the legislator benefit from the force majeure clause to give the parties a tantamount or equivalent power or authority of the judge, to empower or authorize them, the same as the judge, to modify and adjust the contract, by renegotiating the supply chain contract during the occurrence of the supply chain disruptions, to realize a flexible supply chain resilience?. The researcher suggests some relevant recommendations to the Iraqi legislator, the most important of which is to suggest the amendment of the second paragraph of the article (146) of the Iraqi civil law, to allow the parties to renegotiate the contract, by the force majeure clause inserted in the contract. KEY WORDS: Force Majeure, Supply Chain Disruptions, Supply Chain Resilience, Risk-Sharing, Risk Mitigation