Force Majeure in Contracts: Lessons from COVID & Why You Need to Update Your Clauses

What is Force Majeure?  A force majeure clause allows parties to pause or exit a contract if something truly unforeseen or extraordinary happens — something that makes it impossible to fulfil the agreement.

Traditionally, this covered events like natural disasters, wars, or "acts of God." Think of it like a legal break clause, but only for the most extreme circumstances.

When COVID-19 hit the UK, many businesses turned to their contracts in search of relief. The force majeure clause quickly became the most relevant — but not always the most helpful — depending on how it was written and what was covered.

 

Post-COVID: What Counts as “Unforeseen” Now?

One major shift post-COVID is the redefinition of what’s considered “unforeseeable.” Pandemics, once seen as rare, are now expected risks — especially in long-term contracts.

Courts have become stricter. If the contract was signed after the start of the pandemic, COVID (or its consequences) may not be considered a valid force majeure event — because it was foreseeable. Timing matters.

To be effective, modern force majeure clauses need to specifically mention:

  • Pandemics or epidemics.
  • Government restrictions or lockdowns.
  • Supply chain disruptions.
  • Labour shortages or staffing crises.
  • Vague phrases like “acts of God” are no longer effective.

 

What We Learned From COVID-Related Disputes

Many businesses tried to invoke force majeure to cancel or delay contracts during the pandemic — but not all were successful.

Courts looked at:

  • The exact wording of the clause
  • Whether performance was truly impossible, or just more difficult or expensive
  • Whether the event was foreseeable at the time of signing
  • If the contract didn’t clearly cover pandemics, or if the business could still technically deliver (even at a higher cost), force majeure usually didn’t apply.

 

Why Renegotiation & Hardship Clauses Now Matter More Than Ever

  • Force majeure isn’t the only safety net. Businesses are now turning to hardship clauses, which allow parties to renegotiate the terms if continuing becomes unreasonably difficult — not just impossible.
  • These clauses offer flexibility and help avoid expensive disputes or court action. They’re about adapting, not cancelling.
  • If your contract doesn’t include one, now’s the time to add it.

Conclusion & Action points

  • Review and update your contracts — especially long-term or supplier agreements,
  • Be specific: name pandemics, cyberattacks, labour shortages, and similar events.
  • Add a hardship or renegotiation clause as a practical safety net.
  • Don’t wait for disruption — plan for uncertainty now.

 

If you’d like help reviewing or updating your force majeure clause, GR Ace Legal Compliance is here to guide you through it.