When the chips are down – BC Court of Appeal provides guidance on force majeure, frustration and declaratory relief
In Interfor Corporation v Mackenzie Sawmill Ltd, the British Columbia Court of Appeal dismissed an appeal from a summary trial decision ordering declaratory relief. Interfor confirms that the presence of a force majeure provision does not displace the doctrine of frustration; rather, a force majeure provision can signal whether the parties foresaw the events alleged to have frustrated the contract. Interfor also teaches that a force majeure provision that permits a party to “discontinue or curtail delivery” without liability does not permit the party to terminate its obligations permanently.
