Legal Definitions - restraint of princes

The legal term restraint of princes is an older phrase that refers to actions taken by a government or sovereign power that prevent or significantly hinder the performance of a contract. Essentially, it describes governmental interference, such as an embargo, the seizure of goods, or other official acts that make it impossible or illegal for a party to fulfill their contractual obligations.

While the language is archaic, the concept remains relevant today, particularly in international trade, shipping, and insurance policies (especially marine insurance) and within "force majeure" clauses in contracts. These clauses often list "restraint of princes" as an event that can excuse a party from performance due to unforeseen governmental actions beyond their control.

• Example 1: Government Seizure of Cargo

  A shipping company is contracted to transport a large consignment of medical supplies from one country to another. While the vessel is en route, the destination country's government, citing an urgent national health crisis, issues an order to divert the ship to a different port and seizes the entire cargo for immediate domestic distribution. This action prevents the shipping company from delivering the supplies to the original intended recipient as per their contract.

  Explanation: The government's act of diverting the ship and seizing the cargo constitutes a "restraint of princes." This sovereign intervention directly prevented the shipping company from fulfilling its contractual obligation to deliver the goods to the specified client, an event entirely outside the company's control.

• Example 2: Imposition of a Trade Embargo

  An agricultural exporter has a standing contract to supply a specific type of grain to a foreign buyer. Unexpectedly, the exporter's home government imposes a sudden and comprehensive embargo on all exports of that particular grain, citing concerns about domestic food security. As a result, the exporter is legally prohibited from shipping the contracted goods to the foreign buyer.

  Explanation: The government's decision to impose an export embargo is a "restraint of princes." This official governmental act directly prevents the exporter from performing their contractual duty to supply the grain, making performance illegal and impossible.

• Example 3: Closure of a Strategic Waterway

  An oil tanker company has a contract to transport crude oil through a specific international strait. Due to escalating regional tensions, a powerful coastal nation bordering the strait declares the waterway temporarily closed to all commercial shipping for security reasons. The tanker is forced to take a significantly longer and more expensive alternative route, delaying the delivery of the oil.

  Explanation: The coastal nation's governmental order to close the strategic waterway is an instance of "restraint of princes." This sovereign act directly interfered with the tanker company's ability to perform its contract using the agreed-upon route, forcing a deviation that impacts the contract's terms.