3. Force majeure. In most sponsorship agreements, the term “force majeure” is often a well-defined term. Although the applicable definition can easily consume half a page of text, the essential meaning of the term (French for “higher force”) is an event or effect that cannot be anticipated or controlled. Regardless of its simplicity or complexity, the appearance of a force majeure event can have significant consequences for the parties and their respective obligations arising from the sponsorship agreement. For example, a force majeure event could excuse an organizer`s delay in making certain sponsorship rights available or a sponsor`s delay in carrying out maintenance and/or capex obligations. However, an excused performance of force majeure may, at first, require a minimum of burden on the part of the party, which is otherwise required to implement it, and may expire after a certain period of time. With respect to COVID-19, a threshold question will be whether the COVID 19 pandemic falls within the definition of the force majeure sponsorship agreement (and this is not to be expected to be the case). For more details on force majeure, click here. On 7 May 2020, the UK government made recommendations for responsible contractual behaviour in the event of an emergency COVID-19.
It is only a guide and therefore does not crush the rights of the parties under a common contract or law. However, the scope of the areas in which the parties are expected to behave responsibly and fairly in the national interest when implementing and implementing their contracts includes issues such as claiming infringements and opening proceedings and is in future a relevant consideration, in addition to the potential applicability of force majeure and our basic advice for the design of sponsorship agreements. 22.8 No clause in this agreement is applicable by a third party under the Rights of Third Parties Act 1999. As a result, the fact that implementation is more expensive (for example. B an increase in underlying costs due to social distance requirements) or less value (. B for example, because fewer people can or can participate) will not normally give a party the right to rely on the force majeure clause. The same is true when it is more uncomfortable and/or more difficult to do. If the difficulty was due to circumstances that are beyond the control of the party and are so important that no reasonable person could overcome it in similar circumstances, that could be an exception.
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