TOOLS OF THE TRADE – APRIL 2026

FORCE MAJEURE CLAUSES UNDER PRESSURE – 2026 CRISIS LESSONS[1]

Adine Abro‘s article, ‘Is Boilerplate Good for Anything but Boilers Anymore?’ examines a fundamental weakness in commercial contracts that is being laid bare by the current Middle East conflict, explains why this is happening, and provides practical guidance for firms dealing with existing contracts.

The article includes:

  • How the Middle East crisis is exposing the limits of force majeure clauses:
    • A rose by another name: is it coverage at all?
  • Precision rather than generosity: what force majeure actually provides;
  • The knock-on effect: firms far from the front lines;
    • Three types of risk that standard clauses usually miss:
      • Commodity and energy-price disruption;
      • Logistics and supply-chain breakage;
      • Capital withdrawal and financing risk;
  • A framework: Seven principles for better force majeure clauses:
    • Draft with reference to consequences, not only causes;
    • Abandon the falsehood that ‘war’ is self-defining;
    • Construct the catch-all with intention;
    • Confront the cost question directly;
    • Specify the path back to performance;
    • Ensure consistency across the contractual structure;
    • Design procedures for realistic conditions;
  • Immediate steps for parties to existing contracts, including:
    • Mitigation; and
    • Renegotiation;
  • The contract must reflect the world in which it operates.

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