--- title: How the ICC Force Majeure Clause Works in Practice description: Many contracts incorporate the ICC Force Majeure and Hardship Clause. In the context of Iran war, understanding this clause is critical for parties. image: https://blog.bdalaw.it/hubfs/Strait%20of%20Hormuz-2.jpg --- [![BADLAW](https://blog.bdalaw.it/hs-fs/hubfs/BADLAW-2.png?width=400&height=160&name=BADLAW-2.png "BADLAW")](https://www.bdalaw.it/home) - Services - [CONSTRUCTION CONTRACTS](https://bdalaw.it/services/construction-contracts) - [CLAIM MANAGEMENT & DISPUTE RESOLUTION](https://bdalaw.it/services/claim-management-dispute-resolution) - [FIRST DEMAND BONDS & GUARANTEES](https://bdalaw.it/services/first-demand-bonds-and-guarantees) - [INTERNATIONAL COMMERCIAL CONTRACTS](https://bdalaw.it/services/international-commercial-contracts) - [KSA Business Guides](https://bdalaw.it/ksa-business-guides) - [Insights](https://blog.bdalaw.it/en) - [Italian](https://blog.bdalaw.it/) - [English](https://blog.bdalaw.it/en) - [Profile](https://bdalaw.it/profile/giuseppe-broccoli) - [CONTACT US](https://bdalaw.it/en/contact-details) ![Post_3.jpg](https://blog.bdalaw.it/hs-fs/hubfs/Clean_2018/Post_3.jpg?width=1600&name=Post_3.jpg "Post_3.jpg") ** ## [How the ICC Force Majeure Clause Works in Practice](https://blog.bdalaw.it/en/how-the-icc-force-majeure-clause-works-in-practice) 25 Mar 2026 ![Giuseppe Broccoli](https://app.hubspot.com/settings/avatar/02df1d9e3f894f476c494c644f4b39fa) #### Written by [Giuseppe Broccoli](https://blog.bdalaw.it/en/author/giuseppe-broccoli) ** 3 MIN READ** Many international contracts incorporate the **ICC Force Majeure and Hardship Clause (2020 / 2023)**, either by reference or by adaptation or contain a force majeure clause which is drafted on the basis of the ICC Clause. Unfortunately we still see force majeure clauses poorly drafted or as a very superficial boilerplate clause. In the context of Iran war and the **force majeure declarations by Iraq and Qatar on oil‑supply contracts with EU countries**, understanding this clause is critical for contractors and employers alike. Saudi Civil Transaction Law ensures that all contractual parties benefit from the same degree of legal protection and support.   ![Strait of Hormuz-1](https://blog.bdalaw.it/hs-fs/hubfs/Strait%20of%20Hormuz-1.jpg?width=506&height=336&name=Strait%20of%20Hormuz-1.jpg) The ICC Clause defines **force majeure** through four conditions: 1. The event is **beyond the parties’ control**; 2. It was **not *reasonably* foreseeable** at the time of contracting; 3. It is **not *reasonably* avoidable or overcome**; 4. It is **not attributable to the other party**. The clause also lists **examples** such as **war, hostilities, natural catastrophes, government actions**, and similar events, which are **presumed** force majeure if they genuinely prevent or hinder performance. Force majeure is substantially different from hardship.nAccording to the general principles laid down by the ICC : - Force majeure covers extraordinary events beyond a party’s control (such as war, natural disasters, government prohibitions) that prevent performance. Under ICC principle, the consequences are typically suspension of the obligations affected, and, if the event continues for an agreed period, termination of the contract with no liability from the affected party. - Hardship applies, instead where performance is still technically possible but has become excessively onerous because of an unforeseen event (for example, a major disruption of supply or extreme cost increase). Excessively onerous does not that the performance has become simply more expensive. Under ICC approach, hardship triggers renegotiation; if renegotiation fails, a court or tribunal may adapt or terminate the contract. It is worth noting that: - the party invoking successfully the force majeure event is relieved from its duty to perform and from any liability from the time the impediment causes inability to perform, provided that the notice thereof is given without delay. If notice is not given without delay, the relief is effective from the time at which notice thereof reaches the other party; while - the party invoking the hardship event is not entitled to suspend the performance just because it sent the request to renegotiate the contract. ## Iraq and Qatar oil‑supply contracts with the EU Recent reports indicate that **Iraq and Qatar have declared force majeure** on certain oil‑supply contracts with European buyers. Under an ICC‑style clause: - The declaration is justified if the events genuinely **prevent or hinder** the ability to **load, transport, or discharge** crude oil. - If the exporters can still deliver via **alternative routes** (e.g., longer maritime lanes or different ports), the claim may be challenged as going beyond true force majeure and touching instead on** hardship**. These oil‑supply cases mirror issues that arise in other **contracts**: - If a Saudi‑law‑linked construction contractor cannot receive **critical equipment** from a supplier in a country affected by Iran‑related sanctions or port closures, and **no alternative route or supplier exists within a reasonable timeframe**, the contractor may rely on the **ICC Clause** to excuse non‑performance. ## How Saudi law interacts with the ICC Clause Under Saudi‑law‑governed contracts, the ICC Clause is treated as a **contractual allocation of risk**, not a substitute for mandatory CTL rules. - Saudi courts will generally **respect** the ICC wording on notice, burden of proof, and consequences. - However, they may **override** any clause that attempts to waive core protections, such as **Article 97 CTL on hardship** or **Article 173 CTL on liability for harmful acts**. ## Tips for the affected party - Check whether your contract **incorporates the ICC Clause** and whether it is incorporated in full or modified. - Issue a **written notice** within the prescribed period (typically 14–30 days), clearly referencing the **Iran‑linked event**, its **effect on the critical path**, and any **mitigation efforts**. - Collect **evidence** such as government orders, customs or shipping notices, and price‑index data to show that the event was **genuine, external, and not attributable** to your own choices. In the current environment, using the ICC Clause correctly can give you a clear, internationally recognised framework to protect your rights when external shocks—such as sanctions or border closures—hit your project. 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