The Impact of Force Majeure on Contracts and Arbitration in the light of the COVID-19 Outbreak

Abstract

As a deviation from the traditional principle of pacta sunt servanda, the force majeure concept presents an excuse from the contractual performance. Several arbitration cases wanted to determine whether events such as floods, fires, earthquakes, wars, political, and economic instability could fall into the scope of a force majeure event, being unforeseeable, external, and unavoidable. Even though every jurisdiction has its interpretation of the force majeure doctrine or another doctrine instead of force majeure, the International Chamber of Commerce, and UNIDROIT's practice brought these jurisdictions together, offering an international solution that could govern transnational agreements