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LW-GLO – Impendment versus Force Majeure

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › LW-GLO – Impendment versus Force Majeure

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Vijay.
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  • September 3, 2020 at 6:20 pm #583295
    Katangar
    Member
    • Topics: 7
    • Replies: 4
    • ☆

    Dear Tutor,

    What’s the difference/similarity between Impendment and Force Majeure?

    -Robbie.

    September 4, 2020 at 2:28 pm #583443
    Vijay
    Member
    • Topics: 0
    • Replies: 258
    • ☆☆☆

    Hi Robbie,

    Good question!

    Force Majeure refer to unforseeable “superior forces” beyond the control of the contracting parties. Impediment also refers to events beyond the control of the parties. So similar definitions. Both also have the same effect in that neither party need pay damages for non performance due to a force majeure or impediment.

    Force Majeure typically refer to events which can not reasonably be anticipated for example Natural Disasters and Acts of War. There are no formal examples of Impediments contained in Article 79 but it would be reasonable to assume that similar examples of Natural Disasters and Acts of War would be regarded as an Impediment.

    Essentially the have the same meaning.

    I hope this helps.

    Kind regards,

    Vijay

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