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§7.  Non-Performance due to Force Majeure

According to §7 of the EFET agreement the Definition of Force Majeure includes 3 elements:

-          An occurrence beyond the reasonable control of the Party claiming Force Majeure;

-          Which it could not reasonably have avoided or overcome;

-          Which makes it impossible for the Claiming Party to perform its delivery or acceptance obligations

The Definition includes, but is not limited to, the next occurrences:

-          Failure of communications or computer systems of the relevant Network Operator(s);

-          Suspension of delivery or acceptance or disregard of the Claiming Party’s obligations by the Network Operator(s).

In case of Force Majeure the Claiming Party shall notify the other Party as soon as possible and provide a non-binding assumption of extent and duration of Force Majeure circumstances, reasonably update this information and use all commercially reasonable efforts to mitigate the effects of the Force Majeure.

In case of fulfillment of all requirements (including notification and mitigation), the claiming party shall be released from the obligations of delivery or acceptance under the contract(s) for the term and extent of the Force Majeure.    

§7 of EFET agreement also provides for no obligations to pay damages pursuant to §8 due to Force Majeure.

Furthermore, if one Party’s obligations are released under the Force Majeure, the other Party’s obligations are also released.

Author: Maria Zhigalova

§ 8 Remedies for Failure to Deliver and Accept