Building Law Monthly
The interpretation of force majeure clauses
RTI Ltd v MUR Shipping BV [2024] UKSC 18; [2024] 1 Lloyd's Rep 621
The decision of the Supreme Court in
RTI Ltd v MUR Shipping BV [2024] UKSC 18;
[2024] 1 Lloyd's Rep 621 is one of considerable significance for construction lawyers given the prevalence of force majeure clauses in construction
contracts. The decision establishes, or confirms, three points of particular significance in relation to the interpretation
of force majeure clauses and how these points apply in the absence of express words to the contrary in the force majeure clause.
First, force majeure clauses apply to events that are beyond the control of the parties. Second, the party seeking to invoke
the clause must be able to demonstrate that it has taken reasonable steps, or used reasonable endeavours, to overcome the
effects of the event. Third, the party seeking to invoke the clause is not obliged to accept a non-contractual performance
as part of its obligation to take reasonable steps or use reasonable endeavours to overcome the effects of the event.