In the realm of international business, force majeure clauses serve as critical safeguards against unforeseen disruptions. For companies operating in or with China, understanding the nuances of these clauses is essential. China’s legal framework and judicial interpretations of force majeure differ from Western standards, making it imperative for businesses to navigate these provisions carefully.
What Is a Force Majeure Clause in China?
A force majeure clause is a contractual provision that excuses a party from fulfilling its obligations due to unforeseeable and uncontrollable events. In China, the concept is codified under Article 180 of the Civil Code and Article 590 of the Contract Law. These provisions outline the conditions under which a party may invoke force majeure, typically including natural disasters, government actions, or other