This clause, known as the “ICC Hardship Clause 2003”, is intended to apply to any contract which incorporates it either expressly or by reference. While parties are encouraged to incorporate the clause into their contracts by its full name, it is anticipated that any reference in a contract to the “ICC Hardship Clause” shall, in the absence of evidence to the contrary, be deemed to be a reference to this clause.

  1. A party to a contract is bound to perform its contractual duties even if events have rendered performance more onerous than could reasonably have been anticipated at the time of the conclusion of the contract.
  2. Notwithstanding paragraph 1 of this Clause, where a party to a contract proves that:

    a. the continued performance of its contractual duties has become excessively onerous due to an event beyond its reasonable control which it could not reasonably have been expected to have taken into account at the time of the conclusion of the contract; and that

    b. it could not reasonably have avoided or overcome the event or its consequences,

    the parties are bound, within a reasonable time of the invocation of this Clause, to negotiate alternative contractual terms which reason-ably allow for the consequences of the event.
  3. Where paragraph 2 of this Clause applies, but where alternative contractual terms which reasonably allow for the consequences of the event are not agreed by the other party to the contract as provided in that paragraph, the party invoking this Clause is entitled to termination of the contract.