Selected Cases by Article & Issues
(1) Non-performance by a party is excused if that party proves that the non-performance was due to an impediment beyond its control and that it could not reasonably be expected to have taken the impediment into account at the time of the conclusion of the contract or to have avoided or overcome it or its consequences.
(2) When the impediment is only temporary, the excuse shall have effect for such period as is reasonable having regard to the effect of the impediment on the performance of the contract.
(3) The party who fails to perform must give notice to the other party of the impediment and its effect on its ability to perform. If the notice is not received by the other party within a reasonable time after the party who fails to perform knew or ought to have known of the impediment, it is liable for damages resulting from such non-receipt.
(4) Nothing in this article prevents a party from exercising a right to terminate the contract or to withhold performance or request interest on money due.
|1||Exemption for non-performance||4|
|1.1||Impediment amounting to exemption||5|
|1.1.1||Conduct by breaching party||1|
|1.1.3||Non performance by independent contractor|
|1.1.4||Act of public authorities||4|
|2||Obligation to notify other party of impediment|
|2.1||Time of notice|
|2.2||Failure to give timely notice||1|
|3||Consequence of impediment on remedies||1|
|3.1||Termination of contract||1|
|3.2||Withholding of performance|
|3.3||Interest on money due|
|4||Force majeure and hardship (see arts. 6.2.1-6.2.3)||2|
|5||Force majeure and exemption clauses (see art. 7.1.6)|
|6||Force majeure in long-term contracts|