| If performance of your contract is prevented, this may interest you.
Many people have heard the phrase "Act of God".
But the meaning of the phrase was the subject of review by the Appellate Division of the Superior Court of New Jersey in January of this year.
Plaintiffs contracted with a catering hall for a wedding reception. They signed a contract that required the contract price -- more than $10,000 -- be paid in advance.
Less than 45 minutes after the wedding reception began, a power failure in the area made it impossible for the reception to continue.
Plaintiffs sued for the return of their money, and more--$6,000 paid to the band and another $6,000 paid to photographers.
The trial judge denied relief because the caterer's contract contained a force majeure or "Act of God" clause. The clause excused the caterer's obligation to performance if its ability to do so was prevented by unforeseen circumstances such as wars, riots, floods, power failures, etc.
The decision was appealed.
YOU BE THE JUDGE: Is a party liable to pay damages for breach of contract if his performance is prevented by circumstances beyond his control?
The Appellate Division reversed the trial court and reiterated valuable guidelines for measuring contract obligations.
Even in the absence of an "Act of God" clause, a party need not perform his contract if unforeseen conditions arise which make performance impracticable. Thus, the caterer was indeed relieved of the obligation to complete the catering event.
However, where one party to a contract is excused from performance as a result of an unforeseen condition, the other party is generally excused, too. Therefore, the same power failure that relieved the caterer of the obligation to provide plaintiffs with a wedding reception also relieved plaintiffs of the obligation to pay the contract price.
The Appellate Division held that since the caterer had partially performed, by starting the reception before the power failure, it was entitled to be paid the reasonable value of those services.
The decision points out that a courtroom can bring justice and may be the only way to protect your rights. We know courtrooms; we have harnessed the power of the law in courtrooms to bring justice for our clients for decades. Please contact us to discuss how we can help you in a new lawsuit or provide a "second opinion" about your pending lawsuit. There is no obligation for the initial consultation. |
