Which type of obligations can be affected by Force Majeure?

Prepare for the Travel Industry Council of Ontario Exam. Understand essential travel regulations and procedures with flashcards and multiple-choice questions. Each question offers insights and explanations to help you excel!

Force Majeure refers to unexpected events that are beyond the control of the parties involved in a contract, which can prevent one or both parties from fulfilling their contractual obligations. In the travel industry and other sectors, this can include situations such as natural disasters, wars, pandemics, or other significant events that impede normal business operations.

Supplier and subcontractor obligations can be directly impacted by Force Majeure because these parties may not be able to deliver goods or services as specified in their contracts due to unforeseen circumstances. When such events occur, suppliers may invoke Force Majeure clauses to avoid liability for non-performance, as fulfilling their obligations has become impossible or impractical.

On the other hand, customer service obligations, payment obligations, and marketing obligations are typically less susceptible to Force Majeure influences. For example, while customer service may be challenged during a crisis, companies often still maintain some level of obligation to attend to customers, albeit under difficult circumstances. Similarly, while payment obligations might be affected in extraordinary cases, a Force Majeure event usually does not excuse a party from making payments unless specifically stated in the contract. Likewise, marketing obligations, although they may need adjustments due to prevailing conditions, usually do not fall under the Force Majeure definition

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