[Direct answer]It's not necessarily all exempted, but it depends on the impact. According to Articles 180 and 590 of the Civil Code, if a person is unable to fulfill their civil obligations due to force majeure, they shall not bear civil liability; however, the scope of exemption corresponds to the degree of impact of force majeure—if all obligations cannot be fulfilled, all liabilities are exempted; if some obligations cannot be fulfilled, some liabilities are exempted; and if force majeure occurs after a delay in performance, no exemption applies. To claim exemption, three conditions must be met simultaneously: the event must be unforeseeable, unavoidable, and insurmountable; there must be a causal relationship between the force majeure and the inability to perform; and the party affected by the force majeure must notify the other party in a timely manner and provide proof within a reasonable period. Common types of force majeure include epidemics, extreme weather, and government actions, but "poor market conditions" and "rising costs" do not qualify as force majeure; unless otherwise specified in the contract, exemptions shall follow the contractual provisions, except for those mandated by law.

1. Problem background and typical scenarios

After the typhoon caused a one-month construction halt, the contractor claimed for an extension of the construction period but was asked to compensate; the supplier was unable to deliver due to lockdowns, and the purchaser demanded to terminate the contract and seek compensation. The force majeure clause is a common "first response" for both parties when disputes arise, but the actual legal dialogue requires much more precision—exemption from liability cannot be simply stamped with "due to the pandemic"; the causal chain, notification chain, and evidence chain are all indispensable.

II. Key points of contention

Firstly, the criteria for determining force majeure and the attributes of policy actions; Secondly, the correspondence between causality and the degree of impact; Thirdly, the fulfillment of the obligations of notification and proof; Fourthly, the three-way boundary between force majeure, changes in circumstances, and commercial risks.

III. Professional analysis by Henglue Lawyers

The first layer is the determination framework: the three elements of unforeseeability, unavoidability, and insurmountability are indispensable; earthquakes and floods are typical examples. Government expropriation and sudden regulatory measures can be included, while raw material price increases, financing difficulties, and exchange rate fluctuations are considered commercial risks—commercial risks are normal fluctuations borne by operators. The principle of risk and reward matching applies here. Attempting to package losses as force majeure is the most common reason for losing cases in such cases. The second layer is the correspondence between causality and proportionality: the exemption amount is determined based on the actual impact of force majeure—for example, a 40-day shutdown due to pandemic control measures would result in a 40-day extension of the construction period, rather than extending the entire remaining period. For debts that have already exceeded the due date, force majeure during the delay period cannot exempt liability. For deliveries that exceed the due date and are subsequently subject to control measures, the delayed portion must be compensated. In principle, monetary obligations are not exempted due to force majeure (payment obligations do not disappear due to control measures), which is a major difference from performance-based obligations. The third layer is procedural obligations: Article 590 of the Civil Code requires timely notification and provision of evidence within a reasonable period—notifications must be in writing and traceable (emails, letters, chat records), and evidence includes government announcements, industry association notifications, work stoppage orders, and insurance investigation reports. Failure to notify in time results in the aggravation of the other party's losses, and the notification obligation itself carries independent fault liability. The fourth layer is the application of the three-tier framework: force majeure (full exemption or partial exemption), change of circumstances (request for modification or termination if continued performance would be unfair, subject to court discretion, not an automatic exemption), and commercial risks (self-bearing)—the same event may trigger multiple clauses simultaneously: factory shutdown due to control measures is force majeure, sudden drop in order demand due to control measures is a change of circumstances, and profit decline due to intensified competition is a commercial risk. Claimants should categorize their claims according to the order of "impact on performance—impact on fairness—impact on profitability," and failure to choose the correct track will result in losing the entire case. The true value of force majeure clauses lies in their clarity at the time of contract signing: specifying applicable circumstances, notification deadlines, and evidence forms, as well as the sharing of consequences. This minimizes room for disputes during litigation. The first week after an event occurs is the golden period for evidence collection—capturing screenshots of announcements, on-site images, and correspondence documents at once ensures the authenticity of the exemption claim.

IV. Practical suggestions and legal basis

The first step is to immediately assess the impact of the event and notify the other party in writing after the incident, clarifying the scope of obligations affected. The second step is to collect supporting materials such as government announcements and stop-work orders and provide them within a reasonable timeframe. The third step is to negotiate a postponement, partial performance, or termination plan based on the degree of impact, and reach a written supplementary agreement. The fourth step is to claim partial or full exemption from liability in litigation if no agreement is reached, to prevent commercial risks from being included in the claim. Main legal basis: Article 180 of the Civil Code of the People's Republic of China (effective January 1, 2021) regarding force majeure; Article 590 regarding exemption from liability and notification obligations in the event of force majeure; and Article 533 regarding the provisions on changes in circumstances. Specific application shall be subject to the currently effective provisions.

5. Henglu Law Firm's Reminder

The mnemonic for force majeure: First self-check the three characteristics; Correlate the cause and effect; Send notifications promptly and keep records; Avoid mixing risks—exemption from liability is a proportional issue, not a get-out-of-jail-free card. For disputes involving force majeure and contract performance, you can resolve them through legal means.Business and contract disputes in enterprisesObtain a comprehensive solution for the service; for matters related to other contracts, you can refer to it for reference.Special servicesColumn; for cases involving the suspension of construction projects and construction contracts, the parties may refer to the following provisions for resolution:Real estate transactions and construction projectsPlate; for matters involving loss recovery and enforcement, you can seek adviceCreditor's rights and debts, and enforcementTeam.

VI. Frequently Asked Questions

Q1: Can I be fully exempt from liability if I can't deliver the goods due to the lockdown caused by the pandemic?

The actual impact of the lockdown may result in a postponement or partial exemption from liability. For the part of the overdue payment that occurred before the lockdown and is unrelated to the lockdown, the debtor shall still bear the responsibility as usual; in principle, monetary debts are not exempted from liability.

Q2: Is a sharp rise in the price of raw materials considered an act of force majeure?

No, it's a commercial risk. If the price increase reaches an obviously unfair level, you can try to request a change or termination through the path of a change of circumstances, but this requires the court's discretion and has a high burden of proof.

Q3: What will happen if I don't get notified in time?

The other party may claim for the expanded losses caused by the failure to notify; the obligation to notify is an integral part of the claim for exemption from liability, and the delay in notification itself constitutes a fault.

Q4: Are all government actions considered force majeure?

Unforeseen and insurmountable factors such as sudden regulatory measures and expropriation may constitute force majeure; routine administrative approvals and penalties do not constitute force majeure, and their nature should be judged according to the specific administrative actions involved.

Q5: Can I still claim compensation even though the contract stipulates that "all risks shall be borne by the party itself"?

Except for the doubtful validity of the format clauses related to force majeure, the legal provisions on force majeure shall prevail in most cases, and the clauses cannot comprehensively exclude the statutory exemption from liability.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, to avoid missing the statutory time limits.Corporate commercial legal services·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.