Singapore | Interpretation of force majeure clauses, risks allocation and permitted consequences

In Foreland Singapore Pte Ltd and another v IG Asia Pte Ltd [2024] SGHC 179, the Court interpreted the permitted consequences of a force majeure clause with reference to its language and alongside other relevant terms in the parties’ agreement. On a contractual interpretation of the force majeure clause in question, the Court held that the Defendant was entitled to refuse to pay out profits made on closing trades due to a force majeure event, but was not entitled to reverse those trades. Directors Wendell Wong and Tay Eu-Yen discusses this decision in this update.

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