What Does “Force Majeure” Mean in a Contract?
An "act of God" clause excusing performance when extraordinary events beyond control prevent fulfillment.
Detailed Explanation
Force majeure excuses non-performance when unforeseeable, uncontrollable events make it impossible. Traditional examples include natural disasters, wars, and government actions. Post-2020, pandemic coverage became a major focus.
Force majeure doesn't excuse performance just because it became harder or more expensive - the event must make performance truly impossible or impracticable. The clause typically requires prompt notice and mitigation efforts.
Example in a Contract
“Neither party shall be liable for failure to perform due to causes beyond reasonable control, including acts of God, war, terrorism, pandemic, government action, or natural disasters. The affected party must provide prompt notice and make reasonable efforts to mitigate.”
Why It Matters
Force majeure protects you when the unforeseeable happens. Check whether your contracts cover pandemics, supply chain disruption, and other events that could affect your business. Also understand what obligations continue despite force majeure.
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