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Contract Glossary

Act of God

Definition

An event caused by natural forces beyond anyone's control, earthquakes, hurricanes, floods, volcanic eruptions, or severe storms, that could not have been predicted or prevented. In contract law, an Act of God typically excuses a party from performing their obligations if the event makes performance impossible or impracticable.

In Practice

A construction company contracts to build a commercial building by December. In October, an unprecedented hurricane destroys the partially completed structure and surrounding infrastructure. The contractor invokes the Act of God provision to extend the deadline and excuse responsibility for the damage. Without such a clause, the contractor could be held in breach for missing the completion date, even though no reasonable precaution could have prevented a Category 5 hurricane.

Example Clause

Neither party shall be liable for any failure or delay in performing its obligations under this Agreement if such failure or delay results from an Act of God, including but not limited to earthquake, flood, hurricane, tornado, wildfire, tsunami, or other natural disaster beyond the reasonable control of the affected party, provided that the affected party gives prompt written notice and uses commercially reasonable efforts to resume performance.

Common in these contract types

Frequently asked questions

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This content is for informational purposes only and does not constitute legal advice.