[SharpRightTurn]

The article is correct in that normally a bad outcome in pricing on the part of one party is not considered force majeure.

My instinct is that Continental would argue that what is unforeseen, thus qualifying for a claim of force majeure, is the Red Commie Coronavirus (unforeseen/act of God), which resulted in Stay at Home orders, thus gutting the petroleum markets.

Not sure how far they can get on that argument (if they go that route).

[Zhang Fei]

[The article is correct in that normally a bad outcome in pricing on the part of one party is not considered force majeure.

My instinct is that Continental would argue that what is unforeseen, thus qualifying for a claim of force majeure, is the Red Commie Coronavirus (unforeseen/act of God), which resulted in Stay at Home orders, thus gutting the petroleum markets.

Not sure how far they can get on that argument (if they go that route).]

---

I’m skeptical of the argument, but if he wins in the courts, that will boost his odds of not having to do a Chapter 11 filing and losing most of his personal fortune. As a long-suffering shareholder, I’m rooting for him. If his personal fortune survives this, will Hamm hedge Continental’s output in the future? Knowing him from any number of public statements and interviews, probably not. You can’t teach an old dog new tricks.

[zeestephen]

Re: “Not sure how far they can get on the force majeure argument”

Since the next argument will be a Chapter 11 shut down, maybe far enough?

[AndyJackson]

There is another issue here, which is that if Continental is sued, the party suing for breach of contract has to prove his damages. With oil priced far below any usual expectation what would the purchasers damages be?