Home Q&A Forum Can a party terminate an international contract due to force majeure?
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Business Contracts

International Contract

California

Asked on Jun 27, 2025

Can a party terminate an international contract due to force majeure?

I am a small business owner based in the United States and I have recently entered into an international contract with a supplier in China to provide raw materials for my manufacturing process. However, due to the ongoing COVID-19 pandemic, the global supply chain has been severely disrupted, causing significant delays and making it impossible for the supplier to fulfill their obligations under the contract. I want to know if I have the right to terminate the contract based on force majeure and what potential legal consequences or liabilities I may face if I do so.

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Business Contracts

California

Answered 251 days ago

Norman R.

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Whether an international contract may be terminated due to force majeure depends on whether the contract includes a "force majeure clause" that defines those events that are beyond the control of either party and would render contract performance impossible. Typical force majeure events could include, war, natural or man-made disasters, "acts-of-god", civil turmoil, etc. Disruptions to global supply chains due to the Covid-19 pandemic could be considered a force majeure event if it is identified as such in the force majeure clause of the contract. To determine the legal consequences and liabilities of terminating the contract the contract should be reviewed by a qualified lawyer to evaluate: whether supply chain disruptions due to Covid-19 qualifies as a force majeure event; whether there are notice requirements for declaring a force majeure event; whether the notice requirements (if any) have been properly satisfied; whether the Party declaring a force majeure event must take mitigating actions, etc. You should consult with a qualified lawyer to determine specific legal consequences and liabilities based on the actual terms of your contract.

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