Force Majeure in the Supreme Court: MUR Shipping BV v RTI Ltd [2024] UKSC 18

Force majeure (FM) clauses are designed to free both parties to a contract from liability when an event beyond their control prevents one or both of them from performing the contract.Examples of such events include inclement weather, natural catastrophes, political upheaval, changes in applicable rules or regulations, or unavailability of essential supplies or services.It is common to include FM clauses in contracts such as manufacturing, construction or transportation contracts, where there is a high risk of such events occurring due to the length of time required to perform the contract, or the complexity of the performance obligations.Often a lot of money is at stake and preallocating the risk of such events is crucial to avoid disputes further down the line.While disputes regarding the meaning and effect of FM clauses may not be rare, such disputes rarely reach the Supreme Court (SC).MUR Shipping 1 was one such rare case. 2

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Publication Details

Journal
Queen Mary Research Online (Queen Mary University of London)
Published
2024-08-30
Primary Topic
Legal case studies and regulations
Type
article
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article

Force Majeure in the Supreme Court: MUR Shipping BV v RTI Ltd [2024] UKSC 18

Queen Mary Research Online (Queen Mary University of London)
Legal case studies and regulations
article

Force Majeure in the Supreme Court: MUR Shipping BV v RTI Ltd [2024] UKSC 18

article en

Abstract

Force majeure (FM) clauses are designed to free both parties to a contract from liability when an event beyond their control prevents one or both of them from performing the contract.Examples of such events include inclement weather, natural catastrophes, political upheaval, changes in applicable rules or regulations, or unavailability of essential supplies or services.It is common to include FM clauses in contracts such as manufacturing, construction or transportation contracts, where there is a high risk of such events occurring due to the length of time required to perform the contract, or the complexity of the performance obligations.Often a lot of money is at stake and preallocating the risk of such events is crucial to avoid disputes further down the line.While disputes regarding the meaning and effect of FM clauses may not be rare, such disputes rarely reach the Supreme Court (SC).MUR Shipping 1 was one such rare case. 2

Queen Mary Research Online (Queen Mary University of London)
Queen Mary University of London (GB)
Openalex Percentile: Top 25%
Legal case studies and regulations
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