BLM23035 - LFLs: commencement and transition: excepted leases: extended time limits: abnormal events: FA06/Sch8/Para 19

Conditions B, C and D in BLM23030 are treated as met where they are not met only because

• the event is abnormal or unusual,
• the event is unforeseen, and could not reasonably have been foreseen, at the date when the main contract for the construction of the leased asset is entered into,
• the event is beyond the control of each of the principal parties, and
• as respects the Condition in question, the consequences of the event could not have been avoided by the exercise of all due care, or the taking of all reasonable steps, by the principal parties or any of them.

The ‘principal parties’ are the lessor's side, the lessee's side and the contractor under the main contract for the construction of the plant or machinery.

An example of an event that might be both unforeseen and beyond the control of the parties is a strike or the sinking of a ship carrying materials to be used in the construction of the asset delaying construction.

Such events are also unlikely to be able to have been avoided by any of the principal parties.

Cases of doubt or difficulty should be referred to CT & VAT (Technical) after having obtained any relevant explanations and documents.