Going to start with the fact that I am *not* a Solicitor/Lawyer/Barrister/Legal Professional.That's why the legal challenge that Malaysia preparing seems against both Kongsberg and Norway Government. In the end it is legally binding contract, and one sided contract termination will mostly going to be pursue with legal dispute. Force Majeure claim is in my opinion debatable to be use on matter of export restriction changes. From what I gather from Malaysian forums, previously the choice going to be all MBDA (Exocet and Mica). Then Kongsberg and supported by Norway lobby manage to get NSM contract over Exocet.
In the end I suspect MBDA Exocet will going to reclaim the contract. Malaysia now seems going to pursue legal means to make Kongsberg and Norway paid the business reputation prices, at least for this part of Asia defense market.
From the way I see it.
A contract only remains legally binding when the laws of the country governing the contract allow the provisions of the contract to be legal.
If the laws change to make provisions of the contract illegal, the contract would become unenforceable.
So basically if this goes to court in Norway, good luck.