Prerequisite to constitute a Force Majeure
1. An event taking place after the contract coming into effectiveness;
2. An event not due to the fault of the party breaching the contract;
3. The party breaching the contract can neither forecast, nor avoid nor overcome both the occurrence and consequence of the event.
Fluctuation of commodity price, changes of currency exchange rate, up and down of stock markets, delay in spare parts supply belong to normal risks of business and do not constitute Force Majeure
Function of Force Majeure clause
To specify under what circumstances the party breaching the contract can have disclaimer.