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Public Procurement Contracts: What constitutes force majeure?

Force majeure is a universally adopted provision in procurement contracts. What constitutes force majeure? Further, termination of public procurement contracts is also not uncommon. What are the common grounds for the termination of a public procurement contract? Can warranties be enforced?

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Constitutes and Termination of Public Procurement Contracts

Constitution of Force Majeure

Force majeure can be defined as the greater force that is included in the procurement contracts as a provision that remove the liability of both parties (Contractor and other party) for natural and unavoidable disasters that may affect the expected course of events. It also removes the liability of both parties for the events that may restrict the participants from fulfilling the obligations (Blumenfeld, 2010). There are various factors such as uncertainty, natural disasters, and change in government policies etc. that constitute force majeure. The continuous impact of such events constitutes the force majeure.

Following are some circumstances that constitutes force majeure -

? Situations beyond the control of parties that are involved in procurement contract
? Circumstances that ...

Solution Summary

Public procurement contracts are examined. What constitutes force majeure is determined.