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Definition

In law this refers to an unpredictable event which prevents one party from completing its obligations in terms of a contract. Most major contracts contain a force majeure clause which allows the parties to delay or even cancel their obligations. In South African law a force majeure requires that the obligation cannot be fulfilled - in other words it is impossible. It cannot be something which was caused by either party and the fact that it was unpredictable is insufficient to make it a force majeure. The leading South African case is <a href="https://en.wikipedia.org/wiki/Peters,_Flamman_and_Company_v_Kokstad_Municipality">Peters, Flamman & Co v Kokstad Muncipality 1919 AD 427</a>. In South Africa a number of insurance companies are arguing that COVID-19 represents a force majeure and they are seeking to avoid their obligations in terms of policies which they have sold to businesses, especially covering loss of profits.

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