Question: Company A signed a contract with a foreign importer, exporting agricultural products. The date for signature was September 1 and the time for shipment stipulated

Company A signed a contract with a foreign importer, exporting agricultural products. The date for signature was September 1 and the time for shipment stipulated in the contract was October, November and December. However, after the mid-September, the domestic price of the contracted product rose to a significant extent. Company A found it would suffer great loss if it exported the goods according to the contract. Upon investigation, the reason for the rising of the price was the serious flood taking place in the producing area in mid-July. Can company A resort to force majeure clause the avoidance of its contractual obligations? What lessons can company A learn from this case?

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