Discharge, Frustration and Force Majeure

Abstract

Any construction contract goes along with risk. A spectrum of risk matrices may be identified as being common to most, if not all, construction projects. It appears that one of the major differences between Civil law and Common law is the approach taken in respect of risk allocation. Whilst in Common law countries risk is allocated by the terms of the contract, in Civil law countries it is allocated by the Civil Code. The parties to the contract may then adjust the given risk allocation by the terms of the contract within the limits provided by law. Thus in Civil law countries risk allocation and risk allocation methods are not really a hot topic. Instead it is necessary to identify the risk allocation approach of each section of the Code before entering into adjustment discussions.