06 Nov Unit 4_MT437_Discussion response
13769Respond or elaborate on the response below:
“Force Majeure” is a French phrase that translate to “superior force” in the English language and is used to describe extraordinary events beyond anyone’s control such as natural disasters, war, government acts, pandemics, and economic changes. Legally, an act of force majeure may be used as a pretext to terminate a contractual obligation based on what is covered in the document’s force majeure clause. In logistics operations, there can be times when events beyond anyone’s control can prevent the delivery of goods and services to consumer (Bowersox et al., 2023). In these events, organization rely on this legally bind clause to allocate the risk and liability that would occur due to non-performance when an event occurs beyond the shipper’s control.
Transportation documents that should include force majeure clauses in its language includes bill of ladings, airway bills, freight contracts, carriage agreements. logistics service agreements, warehousing contracts, purchase and supply contracts, master service agreements and, subcontracting agreements. Each document involves offering a service that moves or stores materials from one hand to another and each has liability attached to it. Ommiting force majeure clauses in these documents means that the organization providing the transportation service is legally liable for damages caused from unexpected events and can lead to legal disputes, additional cost, and lost opportunities. As a result, organizations offering transportation services should always include force majeure clauses within the document to ensure that they are legally protected from unexpected events. This ensure that the organization doesn’t incur unnecessary cost or loss of their reputation.
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