Force Majeure in Philippine Law

Parties may also include a force majeure clause in their contract. This clause may define what events will be considered force majeure between them, such as certain government acts, strikes, emergencies, or other extraordinary circumstances.

However, contractual stipulations must still comply with the law and must not violate morals, good customs, public order, or public policy.

Because of this, the actual wording of the contract matters. A force majeure clause should be reviewed carefully to determine whether the event is covered and what the parties are required to do when such an event occurs.

Events such as supply shortages, shortage of cement, typhoons, power failures, or water interruptions may be considered force majeure depending on the circumstances.

The key point is that the event must be proven, and there must be a clear connection between the event and the failure to perform the obligation.

For example, it is not enough to say that a typhoon occurred. The party invoking force majeure must show how the typhoon directly prevented performance and that the party did not contribute to the delay, damage, or loss.

Force majeure is highly dependent on facts.

A party claiming force majeure should be able to show what happened, when it happened, how it affected performance, and why performance became impossible despite reasonable efforts.

This is why notices, documentation, correspondence, government issuances, supply records, utility advisories, and other evidence may be important in determining whether force majeure applies.