AN ECONOMIC REVIEW OF FORCE MAJEURE CLAUSES IN INTERNATIONAL TRADE UNDER THE CONTEXT OF GLOBAL TRANSFORMATIONS

The rising number of international disruptions, from pandemics to inter-state wars, has brought the doctrine of Force Majeure into focus as a common law contractual provision turned into a key instrument for systemic risk management in cross-border trade. In this article, an economic overview of Force Majeure is given, analyzing its application in risk allocation and cost of transaction reduction in the frameworks of the CISG, UNIDROIT Principles, and ICC model clauses. By examining the profound challenges created by the COVID-19 pandemic, this article argues that traditional legal perspectives are insufficient, necessitating the shift to more resilient and economically sustainable regimes that encourage commercial resiliency amidst a period of unprecedented uncertainty.