In the absence of a force majeure clause, contractors are engaged in narrow common law contracts of “non-feasibility” and “assignment faction,” which rarely give rise to performance excuses. Whether you want to force or excuse non-compliance with a contractual obligation, your starting point should be the language of the license. When checking a licence, special attention is paid to delivery obligations (for example. B minimum sales, production or licensing requirements and the date on which the exporting party must comply with these requirements), termination and/or termination clauses, the choice of statutory provisions and the clauses relating to a case of force majeure. In the event of an unforeseen event, a tenant can rely on Section 56 above and argue that the coronavirus rash and government-ordered ban are a force majeure event that is beyond their control. The withdrawal and licence agreement gives the purchaser only an easy fee. No rights, title or interest are transferred to the licensee. Even ownership of the property is not handed over to the licensee. What is given to the licensee is only the license to use the premises for the agreed purposes. The licensee has the option of issuing the license.
The licensee cannot hold the licence and cannot pay the royalties on the basis of a case of force majeure. Massive business closures resulting from the COVID 19 pandemic can prevent policyholders from fulfilling these contractual obligations and make it difficult for licensees to implement them. Now is the time to review your existing licences – before a dispute erupts over a party`s incapacity – to identify your options, impose or excuse contractual obligations in the current economic environment. As a general rule, courts closely lay down force majeure clauses when they fulfill their purpose, which is to limit damages in a case where circumstances beyond the control of the parties have disappointed the parties` expectations and compliance with the parties` licence. If the parties explicitly define the contours of a “force majeure” in the licence, it is these contours that determine the application, effect and extent of the force majeure provision. The doctrine of frustration may fulfil contractual obligations when an unpredictable event beyond the control of the parties thwarts the primary purpose for which the parties entered into the licence in such a way that a basic acceptance was not taken in the parties` agreement.