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eUCP Version 2.0: Article e14 Force Majeure

08/07/2019

Whilst this article did not appear in eUCP Versions 1.0 and 1.1, it is one that is inherent to most sets of ICC rules. 

 

The term ‘force majeure' is French in origin, literally meaning ‘greater force'. It refers to unexpected events, outside the control of the parties to an agreement, which prevent performance of part or all of the required contractual obligations.

 

UCP 600 article 36 refers to "Acts of God, riots, civil commotions, insurrections, wars, acts or terrorism, or by any strikes or lockouts or other causes beyond it control." Acts of God relate to events caused by natural forces for which a bank assumes no liability or responsibility including for instance, earthquakes, floods, tornadoes, snowstorms, hurricanes, etc. In other words, it refers to events which are caused without any human interference and which could not be prevented. 

 

The article, as written in eUCP version 2.0, reflects the additional text that was included in URBPO 750 article 13 (Force Majeure). The concept of force majeure is the same as in other ICC rules but is extended to cover the inability of a bank to access a data processing system, or a failure of equipment, software or communications network. 

 

 

 

 

 

 

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