At this moment of catashrophe, most of business transactions can not be proceeded or may take a longer time than usual especially if it involved worldwide order or purchase or to complete one task. If both parties anticipate that the task is impossible to complete, then both parties may negotiate to defer the task until everything is back to normal.
However, things may not always be as what we wanted it to be because we are dealing with human. Some human are greedy and selfish. So they insist the task to be completed regardless what is happening around the world, failing which you will be penalised or imposed with huge penalties to pay to the other party.
If this is happening, please look at the terms and conditions of your contract. READ them slowly and carefully. Understand them. If after reading it 3x and you are still trying to figure out what it says, please appoint a lawyer to help you understand it and advice you accordingly.
Back to our favourite Force Majeure Clause, usually there is a definition of what this clause is all about. It will list down all the possible calamities or circumstances that will be covered under this clause. After that, it will tell you how to deal with it if such event occurs. For instance, it will say “a grace period of 30 days is given to both parties to rectify the situation”. If failed, then both parties can issue a termination notice. Usually, both parties are liable for any money due before the calamities took effect. ALWAYS negotiate with the other parties. Be human and put aside your ego.
Some contracts did not really emphasize on Force Majeure Clause. Only in countries experiencing major calamities will have this detailed clause to cover every corner of their business. So it is not a standard clause as the laymen always claim. It VARIES. In Malaysia – this clause is NOT famous and widely applied.
