Contact Form | info@latml.com

CONTACT US
310-751-0181

CONTACT US
310-751-0181

Contact Form | info@latml.com

BREACH OF CONTRACT AND FORCE MAJEURE CLAUSE

Los Angeles Contract Lawyer Discusses Force Majeure Clause Protection, Acts of War, Russian invasion, Ukraine Crisis, Representing Startup and Technology Businesses in Beverly Hills, Malibu, Venice, Santa Monica, and all across Southern California

The Russian invasion of Ukraine has disrupted business operations in both Russia and Ukraine. As a result, business entities have begun issuing force majeure notices to clients in connection with a breach of contract matters.

The purpose of a force majeure clause is to relieve a party from its legal obligations under a contract if an unexpected event like floods, fires, terrorism, acts of war, or government orders make the service extremely difficult or dangerous as to be effectively impossible. In other words, if an unpredictable event occurs, then the law will excuse you from your contract.

CONTRACT FORCE MAJEURE

It’s not easy to issue a force majeure because the legally enforced promise is the core function of a contract. When courts rule on force majeure cases they apply strict measures. Force majeure carries a long history in Roman law, as part of a principle that notes no one is expected to perform the impossible. This concept is applied in all legal systems, as protection for contractual obligations when an unforeseen event beyond the control of the parties, makes it impossible to execute the obligation.

Los Angeles Contract Lawyer Discusses Force Majeure Clause Protection, Acts of War, Russian invasion, Ukraine Crisis, Representing Startup and Technology Businesses in Beverly Hills, Malibu, Venice, Santa Monica, and all across Southern California

Recently, Metinvest, an iron ore and coal mining company operating in multiple locations in Ukraine, issued the force majeure clause with customers and partners. Russia’s assaults, business suspensions, and closures, as well as the Chamber of Industry and Commerce of Ukraine official confirmation of the events, were all factors that contributed to the trigger of the force majeure clause.

Some of the factors that invoke a successful application of force majeure are unpredictability and externality. For example, Ferrexpo, a Swiss commodity trading and mining business operating in Ukraine, issued a force majeure to customers last week. Ferrexpo issuing a force majeure is another example of a successful application of the force majeure clause. Ferrexpo’s obligation was impossible after Russia’s invasion led to port authorities suspending shipment exports from a southern Ukrainian port.

We can expect an increase of companies needing to activate force majeure clauses as the evidence is undeniable. Government orders have paralyzed transactions with Russian-owned entities, Russia continues its assault, and port closures are some of the reasons businesses may issue a force majeure.

The impacts of the Russian-Ukrainian conflict are changing rapidly, and the event is still unfolding. Contractual obligations are going to continue to be overridden by government-enforced orders and through the force majeure clause.

BUSINESS LAW DOCUMENTS

When entrepreneurs, tech startups, and small businesses begin to research and development (R&D) on a new software application, mobile startup, hardware product, new media company, or other technology-based venture, the development of business law documents can get complex, like the force majeure clause, and better advised exclusively by attorneys at L.A. Tech and Media Law Firm. It is a niche area of legal practice and abstract by nature, and experienced attorneys explain legal theories and best practices to their clients. An experienced business consultant and lawyer in Los Angeles, Beverly Hills, Santa Monica, Hollywood, or other California cities will be able to consult entrepreneurs, technology startups, and small businesses on nationwide copyright protection issues and copyright registration strategy, because Copyright Law is federal law and generally applies in all 50 states and territories of the United States and supersedes any state or local law.

David N. Sharifi, Esq.
David N. Sharifi, Esq.

David N. Sharifi, Esq. is a Los Angeles based intellectual property attorney and technology startup consultant with focuses in entertainment law, emerging technologies, trademark protection, and “the internet of things”. David was recognized as one of the Top 30 Most Influential Attorneys in Digital Media and E-Commerce Law by the Los Angeles Business Journal.
Office: Ph: 310-751-0181; david@latml.com.

Disclaimer: The content above is a discussion of legal issues and general information; it does not constitute legal advice and should not be used as such without seeking professional legal counsel. Reading the content above does not create an attorney-client relationship. All trademarks are the property of L.A. Tech & Media Law Firm or their respective owners. Copyright 2019. All rights reserved.

Recent Posts

TOPICS

L.A. TECH & MEDIA LAW FIRM
11620 Wilshire Boulevard, 9th Floor
Los Angeles, CA 90025

Office: 310-751-0181
Fax: 310-882-6518
Email: info@latml.com

Follow Us

Sign up for our Newsletter

Schedule Confidential Consultation Call 310-751-0181 or Use this Form

Schedule Confidential Consultation

Call 310-751-0181 or Use this Form