The PBO statement came in response to correspondence undertaken by Masoud Khansari, the head of Tehran Chamber of Commerce, Industries, Mines and Agriculture, to President Hassan Rouhani on whether the coronavirus could be ascertained as “force majeure”, Tccim.ir reported.
According to Financial Tribune, force majeure clauses are contractual provisions that alter parties’ obligations and/or liabilities under a contract when an extraordinary event or circumstances beyond their control prevent one or all of them from fulfilling those obligations.
Depending on their drafting, such clauses may have a variety of consequences, including: excusing the affected party from performing the contract in whole or in part; allowing a party’s delayed performance, entitling them to suspend or claim an extension of time, or giving that party a right to terminate.