How Armed Conflicts Affect Contracts

In today’s uncertain world, wars and regional conflicts are becoming increasingly common. From Ukraine to the Middle East, armed confrontations can disrupt business operations and contractual commitments. For companies, investors, and legal advisors, one legal concept becomes especially important during such crises: force majeure.

If you are in need of legal advice regarding your contractual obligations in war times, you are welcomed to contact Karimi & Associates Law Firm. Backed by a team of professional specialists and advisors, and experienced lawyers, we can assist you in every step of the way.

Understanding Force Majeure

Force majeure is a standard clause in many contracts that allows parties to suspend or terminate obligations when extraordinary events occur. Common examples include natural disasters, pandemics, government bans, and war.

While not every difficult circumstance qualifies as force majeure, war often does. Armed conflict can destroy infrastructure, restrict trade routes, or impose legal barriers that make performance impossible. That’s why contracts should clearly define force majeure events and, ideally, mention war and similar events explicitly.

It’s also important to distinguish force majeure from hardship or commercial impracticability. A sharp rise in costs or currency fluctuations, for example, is usually not enough. The event must make performance impossible or illegal, not just inconvenient.

How War Impacts Contracts

When war breaks out, especially in key trading regions such as the Middle East, it can have a serious impact on contractual obligations: suppliers may not be able to deliver goods on time and transport routes might be blocked or unsafe; a party may invoke the force majeure clause to suspend performance temporarily or even terminate the contract, depending on the clause’s wording; in international contracts, courts may differ on whether a conflict qualifies as force majeure, for example, European courts may treat war differently than Middle Eastern ones.

That’s why clear drafting and up-to-date legal advice are critical, especially for contracts involving high-risk regions.

Legal Tips and Best Practices for Drafting Contracts

Given ongoing instability in areas like the Middle East, businesses must be proactive in drafting robust force majeure clauses. Here are key recommendations:

  • Be specific: Instead of vague language, list events such as war, invasion, military action, or regional conflict. Consider including sanctions, embargoes, and civil unrest as well.
  • Address regional instability: In contracts involving the Middle East or other unstable areas, include language that acknowledges the risk of sudden conflict or state action.
  • Outline procedures: Define how and when a party must notify the other of a force majeure event, and what evidence is required.
  • Plan for consequences: Clarify whether obligations are suspended, extended, or terminated. Define time limits for the suspension period.
  • Consult legal counsel: A well-drafted force majeure clause can reduce the risk of future disputes and provide a legal shield during crises.

By addressing potential instability up front, businesses can protect their interests and maintain smoother operations, even in turbulent times.

War and other force majeure events can have serious legal consequences for contracts. By understanding how these events work and taking the time to draft thoughtful, well-defined clauses, businesses can reduce uncertainty and safeguard their agreements.

In regions prone to conflict, such as parts of the Middle East, it is especially vital to anticipate potential disruptions and prepare accordingly, and Karimi & Associates Law Firm are there to help you be legally prepared. Legal foresight today can prevent costly disputes tomorrow.

 

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