Distribution Agreement Force Majeure

Summary

Force Majeure clauses in distribution agreements excuse parties from fulfilling obligations due to uncontrollable events, but not payment obligations. Timely notification of such events is crucial, and obligations arising before the event or payment obligations due before the event are not excused. If you have specific concerns about how this clause applies to your situation, consider seeking legal advice.

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Review the contract
To review a distribution agreement, it’s important to check for specific key elements such as:
- Terms of distribution
- Responsibilities of each party
- Payment terms
- Termination clauses
- Dispute resolution mechanisms
Could you please specify any particular concerns or clauses in the contract you need help with?
Each Party shall be excused from fulfilment of any obligations (except any payment obligations) under this Agreement to the extent that and for so long as such fulfilment is prevented or delayed in whole or in part by strikes, lockouts or other labour disturbances or by causes beyond its reasonable control, such as fire, flood, earthquake, war, embargoes, blockades, riots, acts of government, governmental regulation, Acts of God, shortages in energy, transport or supplies deliveries by sub-contractors or delays or failure to perform by suppliers and subcontractors if caused by any circumstances referred to in this Section *.*. (“Force Majeur”).
It seems you are concerned about the Force Majeure clause in your distribution agreement. Here are some key points regarding Force Majeure:
- It excuses parties from obligations due to uncontrollable events.
- Payment obligations are usually not excused.
- Parties must notify each other of such events promptly.
- It doesn't excuse liabilities arising before the event or payment obligations due before the event.
Do you have any specific concerns about how this clause might be applied in your current situation?
The Party experiencing the occurrence of any such event of force Majeur shall inform the other Party hereof without delay, specifying the nature of the event as well as the estimated duration thereof. Upon such notice, both Parties' rights and obligations will be suspended. An event of Force Majeure does not relieve a Party from liability for an obligation which arose before the occurrence of that event, nor does that event affect the obligation to pay money in a timely manner which matured prior to the occurrence of that event.
It seems you are focused on the implications of the Force Majeure clause in your agreement. Here are some points to consider:
- Ensure timely notification of any Force Majeure event.
- Understand which obligations are suspended and which remain.
- Clarify any specific concerns about applying this clause to your situation.
Do you need guidance on a particular aspect related to this clause?