A Comparative Study on the Application of the Force Majeure Clause in International Commercial Contracts between Korea and English in the Era of COVID-19

• 영문명: A Comparative Study on the Application of the Force Majeure Clause in International Commercial Contracts between Korea and English in the Era of COVID-19
• 발행기관: 한국무역학회
• 저자명: 이병찬 한낙현
• 간행물 정보: 『Journal of Korea Trade (JKT)』Vol.26 No.7, 167~184쪽, 전체 18쪽
• 주제분류: 경제경영 > 무역학
• 파일형태: PDF
• 발행일자: 2022.11.30

영문 초록

Purpose - This paper analyzes all possible issues that need to be considered in case disputes occur with regard to force majeure in international commercial contracts through the comparative study between English and Korean during COVID-19. Design/methodology - This paper belongs to the field of explanatory legal study, which aims to explain and test whether the choice of law is linked to the conditions that occur in the reality of judicial practice. The juridical approach involves studying and examining theories, concepts, legal doctrines, and legislation that are related to the problem. Findings - English law does not permit general economic impracticability to qualify as a valid force majeure event. If a party asserts that they were prevented from performing the contract, the courts will examine this strictly. Many commercial contracts in a broad range of sectors and industries are chosen by parties to be governed by English law. With COVID-19, there have been discussion of parties being released from performance as a result of force majeure. Meanwhile, under Korean law, a force majeure event should be unforeseeable and beyond a party’s control. Since COVID-19 is a known event for future contracts, to avoid the risk that a similar situation in the future is deemed foreseeable and under a party’s control, parties must ensure that such a risk is properly addressed in a contract. Therefore, it is necessary to have a new clause to cover a pandemic. Originality/value - In light of the ongoing unexpected and uncertain economic impacts COVID-19 is expected to bring to the world, it is anticipated that companies will experience an increased number of claims involving force majeure around the world, including English and Korea. As such, taking proactive steps to assess the applicable legal principles, including the concept of force majeure of contract, will help companies be prepared for the financial or legal implications of COVID-19. In this regard, it would be advisable for companies and businesses to take specific actions.

목차

1. Introduction

2. Overview of the Force Majeure Clause and Requirements

3. Relationship between COVID-19 and Force Majeure

4. Comparision of Application of the Force Majeure Clause between Korean and English Law

5. Conclusions

References

키워드

COVID-19 English Law Force Majeure International Commercial Contract Korean Law