Act of God meaning

Banking & Finance 2024 case round up Force majeure—shipping contract—reasonable endeavours RTI Ltd (Respondent) v MUR Shipping BV (Appellant) [2024] UKSC 18 This Supreme Court decision examines how a force majeure clause in a shipping contract between MUR Shipping BV (MUR) and RTI Ltd (RTI) should be interpreted. Such clauses excuse a party from performing when specified events outside the parties’ reasonable control (acts of God) occur. They frequently contain a ‘reasonable endeavours’ proviso, which prevents a party from invoking force majeure if the consequences could be averted by taking reasonable steps. The appeal turned on whether those reasonable endeavours required the party seeking to rely on force majeure to accept an offer of performance that did not match the contract terms. In this instance, the suggested alternative was payment in euros rather than US dollars. The Supreme Court unanimously allowed the appeal, ruling that MUR’s refusal to accept RTI’s non-contractual proposal did not amount to a failure to exercise reasonable endeavours...

Banking & Finance—May 2024 case round-up RTI Ltd (Respondent) v MUR Shipping BV (Appellant) [2024] UKSC 18 Force majeure—shipping contract—reasonable endeavours This Supreme Court judgment examined the meaning of a force majeure provision in a seaborne carriage contract between MUR Shipping BV (MUR) and RTI Ltd (RTI). A force majeure clause releases a party from performing contractual obligations where specified contingencies arise that are beyond the parties’ reasonable control (acts of God). Frequently, such clauses contain a ‘reasonable endeavours’ rider, which prevents reliance on a force majeure event if its impact could be avoided through the exercise of reasonable endeavours. The pivotal issue on appeal was whether satisfying that reasonable endeavours requirement meant the party seeking to invoke the clause had to accept an offer of performance that fell outside the contract. In this dispute, the proposed departure from the contract concerned the currency of payment: a tender in euros rather than in US dollars. The offer related only to the settlement currency proposed...

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z This glossary provides helpful (re)insurance and underwriting definitions. For focused guidance on reinsurance terminology, see Practice Note: Reinsurance—essentials. A Accident An unforeseen or unintended event or incident that typically results in damage or injury (physical or financial) to the insured or a third party. Accidental damage Unintended or unexpected harm or damage caused to property or a person. Accidental death benefit Some life insurance policies pay an extra amount, over and above the original sum insured, if the insured dies because of an accident. Act of God (force majeure) An occurrence beyond anyone’s control, such as a natural disaster. Active underwriter The person with primary responsibility and authority to accept insurance and reinsurance risks on behalf of the members of a syndicate in the Lloyd’s market. See also Underwriter. Actuary A qualified professional who...

Whether a party can successfully rely on a force majeure clause hinges on the exact language used, the deal’s commercial setting and background, and the particular facts surrounding the asserted force majeure event and the alleged hindrance to contractual performance. For more detailed guidance, see Practice Notes: • Force majeure—consequences and contract discharge • Force majeure clause analysis—a practical guide. There is, however, some general direction that can be taken from the authorities, with the principal ones outlined below. For commentary on the doctrine of frustration, often examined alongside force majeure, see Practice Note: Discharge by frustration. ‘Acts of God’ decisions are listed below... Case details and analysis Nature of dispute, key issues considered; Event; Result RTI Ltd (Respondent) v MUR Shipping BV (Appellant), 15 May 2024, Supreme Court, [2024] UKSC 18 News Analysis: LNB News 15/05/2024 92—Supreme Court confirms that refusing non-contractual performance did not amount to a failure to use reasonable endeavours (RTI Ltd v MUR Shipping BV) Force majeure clauses...

Work in or adjacent to other buildings An insurance contract may respond to loss or damage to property arising from an insured peril, for example buildings insurance or contractor’s all risk insurance. The peril might be an act of God, or stem from negligence. Insurance can also protect against liabilities owed at law, for instance injury, death or property damage caused by negligence. The insured occurrence must give rise to legal liability, ie a tort. Public liability policies do not extend to accidental damage unless negligence is involved. Such policies also typically exclude contractual liabilities that would not have existed but for the contract. To place insurance over a building, the proposer must hold an insurable interest in it. Usually that interest is ownership, or, for a mortgagee, a financial stake in the property. For further detail, see Practice Note: General principles of insurance contract law. For a contractor, the relevant insurable interest in the works is its contractual duty to safeguard the works until completion...

Tithes Tithes represent a tenth share of all produce—praedial, personal, and mixed—owed to God and, by extension, to the ministers of His church for their support and maintenance. They fall due annually on everything that, with husbandry, yields increase through the act of God, even if that increase is not realised in each year, the obligation nonetheless arising from such productive potential... Tithe rentcharges The difficulty of gathering tithe in kind, coupled with the variable income it produced, prompted early moves to compound tithes: voluntary arrangements termed ‘moduses’ or compositions real, and those established by local or general statutes referred to as ‘corn rents’ or tithe rentcharges. Then, in 1836, a formal process was set out for commuting all tithes into tithe rentcharges, whether achieved by agreement or enforced by compulsion; in practice, almost all tithes have subsequently been so commuted...