The Iraq Britain Business Council (IBBC) hosted an online member webinar with legal experts from Quinn Emanuel to examine the growing importance of force majeure in commercial contracts, particularly in light of recent disruptions affecting Iraq’s energy sector and regional supply chains.

Senior Advisor Colin Findlay opened the session by highlighting the relevance of force majeure following the Iraqi Ministry of Oil’s invocation of force majeure clauses earlier this year, noting that the contractual implications extend throughout the entire supply chain.

The webinar was led by Melis Acuner, Partner at Quinn Emanuel, who explained how force majeure operates under English law, which governs many commercial contracts used in Iraq and the wider Middle East. She stressed that force majeure is not an automatic legal protection but a contractual mechanism whose effectiveness depends entirely on the wording of the clause and the actions taken by the parties involved.

Using practical examples from Iraq’s energy industry and recent geopolitical developments, including disruption around the Strait of Hormuz, the session explored the distinction between genuine force majeure events and situations where performance simply becomes more expensive or less profitable. Participants were reminded that increased costs alone are rarely sufficient to establish force majeure under English law.

The presentation also outlined the key stages of managing a force majeure event, including assessing contractual obligations, issuing timely notices, preserving evidence, mitigating losses, coordinating responses across subcontractors and suppliers, and planning for either project restart or contract termination where appropriate. Particular emphasis was placed on the importance of documentation and demonstrating reasonable efforts to minimise disruption.

A significant part of the discussion focused on the challenges faced by contractors and SMEs operating further down the contractual chain, where prolonged disruption can quickly develop into cash flow, staffing and business continuity issues. The speakers encouraged businesses to review their contracts proactively and ensure force majeure clauses are tailored to the operational realities of their sector rather than relying on generic template provisions.

The session concluded with a Q&A covering practical issues such as the duration of force majeure declarations, the allocation of costs during prolonged disruptions, and the commercial decisions businesses must make when balancing operational readiness with financial sustainability. IBBC will share the presentation with attendees to support members in reviewing and strengthening their contractual arrangements.

Colin Findlay, summarised the session saying that Force Majeure can have critical impacts on business, it is complex and affects business across the supply network when invoked. The key to risk reduction is understanding and preparation.