We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Thursday, 28 May 20
COVID-19: A FORCE MAJEURE EVENT? - KYPRIANOU
KNOWLEDGE TO ELEVATE
While seeing the unexpected COVID-19 outbreak expanding worldwide and the first cases being identified in Cyprus, the commercial sector does not remain unaffected. Emergency measures such as travel restrictions, citizens placed on quarantine and self-isolation are only some of the factors that started to impact parties to commercial transactions that render contract performance physically or commercially impossible. May a party invoke contractually agreed force majeure clauses or, the doctrine of frustration in an attempt to protect themselves from being unable to meet its contractual obligations?
Force Majeure
The concept of “force majeure” (meaning "superior force"), is used commonly in contracts as a clause that essentially releases both parties from liability or obligation when an unexpected event or circumstance beyond the control of the parties, prevents one or both parties from fulfilling their obligations under the contract.
Determining whether the Corona-virus outbreak constitutes a force majeure event, is a matter of construction and will depend on the specific wording and the scope of the clause.
It is the case that force majeure clauses often contain a list of events that qualify as force majeure events. For instance, terms such as “epidemic”, “pandemic”, or more generic terms such as “disease” and “illness” are often expressly listed as events of force majeure. In such cases, it will be easier to claim force majeure protection, as COVID-19 is likely to qualify as a force majeure event. Also, terms such as “acts of government” or “national or regional emergency” may be listed so as to cover emergency measures taken by the government such as travel bans or placing citizens in quarantine in case of this novel outbreak.
Additionally, under common law, a party seeking to invoke that its ability to perform the contract has been prevented by a force-majeure event, has the burden to prove certain elements. These are:
-
that the event was unforeseeable;
-
that it has taken all reasonable steps to avoid or mitigate the effects of the force majeure event; and
-
that the event was beyond its control and thus impossible to overcome.
Most importantly, there must be a causal connection between the force majeure event that made it physically or legally impossible to perform the contractual obligations. With the COVID-19 case, the affected party has to show that due to the outbreak of Corona-virus and its resulting governmental measures, no alternative measures exist for performing its duties under the contract.
Frustration
In case the contract does not include any force majeure clause, the affected party may attempt to excuse its failure to perform its contractual obligations under the doctrine of frustration. Subject to Section 56(2) of the Contract Law Cap.149, as amended, “a contract to do an act which, after the contract is made, becomes impossible, or, by reason of some event which the promisor could not prevent, unlawful, becomes void when the act becomes impossible or unlawful. As interpreted by Cyprus courts, section 56(2) is only applicable to an impossibility which destroys the foundation of the contract, which requires a high threshold for proof of frustration of a contractual undertaking.
Recommended actions
If you have executed a contract or are considering entering into new contract during this period, you should review the force majeure clauses carefully in order to understand the circumstances under which you can declare a force majeure and whether the Corona-virus outbreak and the resulting emergency measures may fall under its scope.
By Andria Kouloumi
Further, notification processes and deadlines should be also reviewed carefully, in order to ensure that your ability to claim force majeure protection is not precluded. Importantly, if you intend to enforce such force majeure clauses, you should consider your obligation to take all the reasonable measures to mitigate the effect of non-performance, otherwise your failure to perform your obligation may not be excused. If in doubt regarding how a force majeure provision applies and whether force majeure protection may cover you, it is recommended to seek legal advice prior to taking any action or sending notices.
Michael Kyprianou & Co LLC is ready to assist and advise you in relation to issues you may face, including by providing advice as to your options and requested objectives, enabling you to make an informed decision.
The content of this article is valid as at the date of its first publication. It is intended to provide a general guide to the subject matter and does not constitute legal advice. We recommend that you seek professional advice on your specific matter before acting on any information provided. For further information or advice, please contact Andria Kouloumi, Associate, at Andria.Kouloumi (at) kyprianou.com
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 31 January 24
CHINA'S INNER MONGOLIA COAL OUTPUT HIT 1.21B TONS IN 2023 - XINHUA
North China’s Inner Mongolia autonomous region churned out 1.21 billion tons of coal in 2023 as it strives to guarantee the country’s e ...
Wednesday, 31 January 24
GAS EXPORTS COST U.S. CONSUMERS MORE THAN $100 BILLION OVER 16-MONTH PERIOD - IEEFA
Limited Demand Growth Could Dampen the Dry Bulk Market in the Coming Months BIMCOStarting in late 2021—before its invasion of Ukraine—R ...
Tuesday, 30 January 24
LIMITED DEMAND GROWTH COULD DAMPEN THE DRY BULK MARKET IN THE COMING MONTHS - BIMCO
Demand
In our base scenario, we expect cargo demand to grow by 0-1% in 2024 and 0.5-1.5% in 2025. This is a 0.5 percentage point reduction for ...
Friday, 26 January 24
RED SEA DIVERSIONS ADD NEARLY A MILLION DOLLARS PER VOYAGE TO SHIPPING COSTS WHILE DOUBLING TRANSIT TIME - LSEG
The incremental costs of diverting a tanker from Asia to NW Europe via the Cape of Good Hope is accounting for an extra $932,905 USD per voyage whi ...
Friday, 26 January 24
HARD COAL GUARDIAN ANGEL OF THE ENERGY SUPPLY - GERMANY COAL IMPORTERS ASSOCIATION
- No security of supply without hard coal
- The Substitute Power Plant Provision Act (EKBG) must be extended
- Higher grid fees due to the ...
|
|
|
Showing 46 to 50 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Directorate General of MIneral and Coal - Indonesia
- Eastern Coal Council - USA
- Manunggal Multi Energi - Indonesia
- SN Aboitiz Power Inc, Philippines
- Economic Council, Georgia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Xindia Steels Limited - India
- Altura Mining Limited, Indonesia
- Timah Investasi Mineral - Indoneisa
- Power Finance Corporation Ltd., India
- GAC Shipping (India) Pvt Ltd
- New Zealand Coal & Carbon
- Ministry of Finance - Indonesia
- San Jose City I Power Corp, Philippines
- Baramulti Group, Indonesia
- Mintek Dendrill Indonesia
- Anglo American - United Kingdom
- Australian Coal Association
- Renaissance Capital - South Africa
- Therma Luzon, Inc, Philippines
- Georgia Ports Authority, United States
- Petron Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- Bulk Trading Sa - Switzerland
- Ambuja Cements Ltd - India
- South Luzon Thermal Energy Corporation
- PTC India Limited - India
- The University of Queensland
- Electricity Generating Authority of Thailand
- Singapore Mercantile Exchange
- Iligan Light & Power Inc, Philippines
- Dalmia Cement Bharat India
- Ministry of Mines - Canada
- Parry Sugars Refinery, India
- Deloitte Consulting - India
- Makarim & Taira - Indonesia
- Globalindo Alam Lestari - Indonesia
- Bukit Baiduri Energy - Indonesia
- Electricity Authority, New Zealand
- Mercator Lines Limited - India
- Semirara Mining and Power Corporation, Philippines
- VISA Power Limited - India
- Borneo Indobara - Indonesia
- The Treasury - Australian Government
- Bhoruka Overseas - Indonesia
- Standard Chartered Bank - UAE
- Sarangani Energy Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Tamil Nadu electricity Board
- Kaltim Prima Coal - Indonesia
- Orica Mining Services - Indonesia
- Meenaskhi Energy Private Limited - India
- Gujarat Sidhee Cement - India
- Leighton Contractors Pty Ltd - Australia
- International Coal Ventures Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Mercuria Energy - Indonesia
- Tata Chemicals Ltd - India
- Straits Asia Resources Limited - Singapore
- IEA Clean Coal Centre - UK
- Grasim Industreis Ltd - India
- Semirara Mining Corp, Philippines
- SMC Global Power, Philippines
- Antam Resourcindo - Indonesia
- Agrawal Coal Company - India
- Vizag Seaport Private Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Mjunction Services Limited - India
- Indo Tambangraya Megah - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Wilmar Investment Holdings
- Simpson Spence & Young - Indonesia
- Wood Mackenzie - Singapore
- Goldman Sachs - Singapore
- Central Electricity Authority - India
- Interocean Group of Companies - India
- Meralco Power Generation, Philippines
- Malabar Cements Ltd - India
- Jaiprakash Power Ventures ltd
- SMG Consultants - Indonesia
- Indika Energy - Indonesia
- Savvy Resources Ltd - HongKong
- Directorate Of Revenue Intelligence - India
- GN Power Mariveles Coal Plant, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Rio Tinto Coal - Australia
- Thai Mozambique Logistica
- OPG Power Generation Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Larsen & Toubro Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Banpu Public Company Limited - Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Oldendorff Carriers - Singapore
- Minerals Council of Australia
- Global Business Power Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Kohat Cement Company Ltd. - Pakistan
- AsiaOL BioFuels Corp., Philippines
- Heidelberg Cement - Germany
- Independent Power Producers Association of India
- Romanian Commodities Exchange
- Marubeni Corporation - India
- ICICI Bank Limited - India
- Coalindo Energy - Indonesia
- Energy Development Corp, Philippines
- GMR Energy Limited - India
- Samtan Co., Ltd - South Korea
- Medco Energi Mining Internasional
- European Bulk Services B.V. - Netherlands
- Ministry of Transport, Egypt
- Jindal Steel & Power Ltd - India
- Videocon Industries ltd - India
- Rashtriya Ispat Nigam Limited - India
- Price Waterhouse Coopers - Russia
- Ceylon Electricity Board - Sri Lanka
- Australian Commodity Traders Exchange
- Neyveli Lignite Corporation Ltd, - India
- White Energy Company Limited
- Port Waratah Coal Services - Australia
- McConnell Dowell - Australia
- PetroVietnam Power Coal Import and Supply Company
- Edison Trading Spa - Italy
- MS Steel International - UAE
- Star Paper Mills Limited - India
- Central Java Power - Indonesia
- Pendopo Energi Batubara - Indonesia
- Salva Resources Pvt Ltd - India
- London Commodity Brokers - England
- Uttam Galva Steels Limited - India
- Posco Energy - South Korea
- Essar Steel Hazira Ltd - India
- GVK Power & Infra Limited - India
- Alfred C Toepfer International GmbH - Germany
- Latin American Coal - Colombia
- Asmin Koalindo Tuhup - Indonesia
- Sinarmas Energy and Mining - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Offshore Bulk Terminal Pte Ltd, Singapore
- ASAPP Information Group - India
- Gujarat Electricity Regulatory Commission - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bharathi Cement Corporation - India
- Aboitiz Power Corporation - Philippines
- Trasteel International SA, Italy
- Planning Commission, India
- Attock Cement Pakistan Limited
- The State Trading Corporation of India Ltd
- Eastern Energy - Thailand
- IHS Mccloskey Coal Group - USA
- Bhushan Steel Limited - India
- Coastal Gujarat Power Limited - India
- Bayan Resources Tbk. - Indonesia
- CNBM International Corporation - China
- Riau Bara Harum - Indonesia
- Formosa Plastics Group - Taiwan
- Coal and Oil Company - UAE
- Billiton Holdings Pty Ltd - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kobexindo Tractors - Indoneisa
- Metalloyd Limited - United Kingdom
- Kalimantan Lumbung Energi - Indonesia
- Indonesian Coal Mining Association
- Lanco Infratech Ltd - India
- Cement Manufacturers Association - India
- Bangladesh Power Developement Board
- PNOC Exploration Corporation - Philippines
- Chettinad Cement Corporation Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Sindya Power Generating Company Private Ltd
- Barasentosa Lestari - Indonesia
- Sical Logistics Limited - India
- Thiess Contractors Indonesia
- Maheswari Brothers Coal Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Bhatia International Limited - India
- Karbindo Abesyapradhi - Indoneisa
- PowerSource Philippines DevCo
- Orica Australia Pty. Ltd.
- Africa Commodities Group - South Africa
- Sakthi Sugars Limited - India
- Intertek Mineral Services - Indonesia
- Indian Oil Corporation Limited
- Miang Besar Coal Terminal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Pipit Mutiara Jaya. PT, Indonesia
- Indian Energy Exchange, India
- Sojitz Corporation - Japan
- Vedanta Resources Plc - India
- Bukit Makmur.PT - Indonesia
- Chamber of Mines of South Africa
- Sree Jayajothi Cements Limited - India
- Binh Thuan Hamico - Vietnam
- Siam City Cement - Thailand
- Karaikal Port Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- Parliament of New Zealand
- India Bulls Power Limited - India
- Kapuas Tunggal Persada - Indonesia
- CIMB Investment Bank - Malaysia
- Bukit Asam (Persero) Tbk - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Merrill Lynch Commodities Europe
- Energy Link Ltd, New Zealand
- Madhucon Powers Ltd - India
- Global Green Power PLC Corporation, Philippines
- Toyota Tsusho Corporation, Japan
- Carbofer General Trading SA - India
- Holcim Trading Pte Ltd - Singapore
- Commonwealth Bank - Australia
- Aditya Birla Group - India
- Kumho Petrochemical, South Korea
- Indogreen Group - Indonesia
- Kideco Jaya Agung - Indonesia
|
| |
| |
|
