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.
|
|
Friday, 10 July 20
CHINA'S BENCHMARK POWER COAL PRICE EDGES UP - XINHUA
China’s benchmark power coal price rose slightly during the past week.
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of ...
Friday, 10 July 20
GLOBAL SHIPPING EARNINGS FORECAST CUT AS SUPPLY SET TO OUTSTRIP DEMAND - MOODY'S
EBITDA forecast worsens, keeping outlook negative. We now expect the aggregate EBITDA of rated shipping companies to fall by around 16%-18% in 2020 ...
Friday, 10 July 20
SLOW RECOVERY IN TANKER RATES TO WEIGH ON BUANA LINTAS LAUTAN - FITCH RATINGS
Fitch Ratings believes that international tanker rates are likely improve after their sharp fall since May 2020, albeit at a slow pace. The weaknes ...
Wednesday, 08 July 20
MARKET INSIGHT - INTERMODAL
During the previous month, the dry bulk market witnessed an impressive increase in the BDI index that has reached 1800 points from 500 with a clear ...
Tuesday, 07 July 20
COAL INDIA WORKERS STRIKE CUTS OUTPUT BY 56%: OFFICIAL - REUTERS
A strike at Coal India Ltd cut production by 56% in the three days ending July 4 as workers oppose opening up coal mining to the private sector, a ...
|
|
|
Showing 876 to 880 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Romanian Commodities Exchange
- Billiton Holdings Pty Ltd - Australia
- Indogreen Group - Indonesia
- Indika Energy - Indonesia
- Renaissance Capital - South Africa
- Formosa Plastics Group - Taiwan
- Wood Mackenzie - Singapore
- Sinarmas Energy and Mining - Indonesia
- Mintek Dendrill Indonesia
- Global Green Power PLC Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Economic Council, Georgia
- Heidelberg Cement - Germany
- Price Waterhouse Coopers - Russia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Wilmar Investment Holdings
- Bhatia International Limited - India
- Kalimantan Lumbung Energi - Indonesia
- PowerSource Philippines DevCo
- MS Steel International - UAE
- Meenaskhi Energy Private Limited - India
- Simpson Spence & Young - Indonesia
- PNOC Exploration Corporation - Philippines
- Directorate General of MIneral and Coal - Indonesia
- Bukit Makmur.PT - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- San Jose City I Power Corp, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Savvy Resources Ltd - HongKong
- Planning Commission, India
- Iligan Light & Power Inc, Philippines
- Gujarat Electricity Regulatory Commission - India
- Kideco Jaya Agung - Indonesia
- Coastal Gujarat Power Limited - India
- Standard Chartered Bank - UAE
- Indian Oil Corporation Limited
- The State Trading Corporation of India Ltd
- Antam Resourcindo - Indonesia
- Tata Chemicals Ltd - India
- London Commodity Brokers - England
- Grasim Industreis Ltd - India
- Mercuria Energy - Indonesia
- Anglo American - United Kingdom
- Directorate Of Revenue Intelligence - India
- Xindia Steels Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Oldendorff Carriers - Singapore
- Edison Trading Spa - Italy
- ASAPP Information Group - India
- Bharathi Cement Corporation - India
- Ambuja Cements Ltd - India
- Karaikal Port Pvt Ltd - India
- Meralco Power Generation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Kohat Cement Company Ltd. - Pakistan
- Binh Thuan Hamico - Vietnam
- Sarangani Energy Corporation, Philippines
- Tamil Nadu electricity Board
- Coalindo Energy - Indonesia
- Vedanta Resources Plc - India
- Aditya Birla Group - India
- Asmin Koalindo Tuhup - Indonesia
- Madhucon Powers Ltd - India
- Orica Mining Services - Indonesia
- Electricity Authority, New Zealand
- Bayan Resources Tbk. - Indonesia
- Merrill Lynch Commodities Europe
- Siam City Cement PLC, Thailand
- Therma Luzon, Inc, Philippines
- Commonwealth Bank - Australia
- New Zealand Coal & Carbon
- Chamber of Mines of South Africa
- European Bulk Services B.V. - Netherlands
- Global Business Power Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Bhushan Steel Limited - India
- Globalindo Alam Lestari - Indonesia
- Kaltim Prima Coal - Indonesia
- Marubeni Corporation - India
- Rashtriya Ispat Nigam Limited - India
- Deloitte Consulting - India
- Leighton Contractors Pty Ltd - Australia
- SMG Consultants - Indonesia
- Bangladesh Power Developement Board
- Kobexindo Tractors - Indoneisa
- Straits Asia Resources Limited - Singapore
- CNBM International Corporation - China
- GAC Shipping (India) Pvt Ltd
- Toyota Tsusho Corporation, Japan
- Maheswari Brothers Coal Limited - India
- Kapuas Tunggal Persada - Indonesia
- Power Finance Corporation Ltd., India
- Bulk Trading Sa - Switzerland
- The Treasury - Australian Government
- Siam City Cement - Thailand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- Goldman Sachs - Singapore
- Georgia Ports Authority, United States
- Larsen & Toubro Limited - India
- Port Waratah Coal Services - Australia
- Jorong Barutama Greston.PT - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Gujarat Mineral Development Corp Ltd - India
- Indonesian Coal Mining Association
- Parry Sugars Refinery, India
- The University of Queensland
- AsiaOL BioFuels Corp., Philippines
- Independent Power Producers Association of India
- Vijayanagar Sugar Pvt Ltd - India
- Medco Energi Mining Internasional
- GVK Power & Infra Limited - India
- Holcim Trading Pte Ltd - Singapore
- Indian Energy Exchange, India
- Ind-Barath Power Infra Limited - India
- Sree Jayajothi Cements Limited - India
- Samtan Co., Ltd - South Korea
- Chettinad Cement Corporation Ltd - India
- Australian Coal Association
- Mercator Lines Limited - India
- LBH Netherlands Bv - Netherlands
- Offshore Bulk Terminal Pte Ltd, Singapore
- Carbofer General Trading SA - India
- Ministry of Mines - Canada
- Sakthi Sugars Limited - India
- Thai Mozambique Logistica
- Manunggal Multi Energi - Indonesia
- Indo Tambangraya Megah - Indonesia
- South Luzon Thermal Energy Corporation
- CIMB Investment Bank - Malaysia
- Kartika Selabumi Mining - Indonesia
- Lanco Infratech Ltd - India
- GMR Energy Limited - India
- Thiess Contractors Indonesia
- Essar Steel Hazira Ltd - India
- Timah Investasi Mineral - Indoneisa
- Energy Link Ltd, New Zealand
- Banpu Public Company Limited - Thailand
- SMC Global Power, Philippines
- Australian Commodity Traders Exchange
- Intertek Mineral Services - Indonesia
- Petron Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sojitz Corporation - Japan
- Orica Australia Pty. Ltd.
- OPG Power Generation Pvt Ltd - India
- Energy Development Corp, Philippines
- Krishnapatnam Port Company Ltd. - India
- Agrawal Coal Company - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Vizag Seaport Private Limited - India
- IHS Mccloskey Coal Group - USA
- Electricity Generating Authority of Thailand
- ICICI Bank Limited - India
- Parliament of New Zealand
- Posco Energy - South Korea
- Sical Logistics Limited - India
- Alfred C Toepfer International GmbH - Germany
- Minerals Council of Australia
- Jindal Steel & Power Ltd - India
- Singapore Mercantile Exchange
- Bukit Asam (Persero) Tbk - Indonesia
- Africa Commodities Group - South Africa
- Kepco SPC Power Corporation, Philippines
- Attock Cement Pakistan Limited
- Rio Tinto Coal - Australia
- Mjunction Services Limited - India
- Pendopo Energi Batubara - Indonesia
- India Bulls Power Limited - India
- Bhoruka Overseas - Indonesia
- Videocon Industries ltd - India
- Global Coal Blending Company Limited - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- TeaM Sual Corporation - Philippines
- Maharashtra Electricity Regulatory Commission - India
- Semirara Mining and Power Corporation, Philippines
- Riau Bara Harum - Indonesia
- Central Electricity Authority - India
- VISA Power Limited - India
- Star Paper Mills Limited - India
- Central Java Power - Indonesia
- Borneo Indobara - Indonesia
- Semirara Mining Corp, Philippines
- Altura Mining Limited, Indonesia
- International Coal Ventures Pvt Ltd - India
- Coal and Oil Company - UAE
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Baramulti Group, Indonesia
- Malabar Cements Ltd - India
- Trasteel International SA, Italy
- Makarim & Taira - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Barasentosa Lestari - Indonesia
- IEA Clean Coal Centre - UK
- Ministry of Transport, Egypt
- Cigading International Bulk Terminal - Indonesia
- PTC India Limited - India
- Kumho Petrochemical, South Korea
- Karbindo Abesyapradhi - Indoneisa
- Eastern Coal Council - USA
- Interocean Group of Companies - India
- McConnell Dowell - Australia
- Metalloyd Limited - United Kingdom
- Uttam Galva Steels Limited - India
- Gujarat Sidhee Cement - India
- Cement Manufacturers Association - India
- Dalmia Cement Bharat India
- Latin American Coal - Colombia
- Jaiprakash Power Ventures ltd
- Bukit Baiduri Energy - Indonesia
- Salva Resources Pvt Ltd - India
- White Energy Company Limited
- Sindya Power Generating Company Private Ltd
- Eastern Energy - Thailand
- PetroVietnam Power Coal Import and Supply Company
- Miang Besar Coal Terminal - Indonesia
- Ministry of Finance - Indonesia
|
| |
| |
|
