Contract Glossary
Force Majeure
Definition
Force majeure, French for 'superior force', is a clause that lets you off the hook when something extraordinary and unforeseeable prevents you from performing. Think hurricanes, pandemics, wars, government shutdowns. It's the 'stuff happens' clause.
In Practice
You have a contract to cater a 200-person corporate event for $30,000. A hurricane shuts down the city two days before the event. Your force majeure clause lists 'natural disasters' as a qualifying event, so you're not liable for failing to perform. Without that clause, the client could sue you for breach. COVID-19 made this clause famous, businesses that had it were protected; those that didn't were stuck arguing about impossibility in court.
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 circumstances beyond the reasonable control of that Party, including but not limited to acts of God, natural disasters, war, terrorism, riots, embargoes, acts of civil or military authorities, fire, floods, epidemics, strikes, or power outages. The affected Party shall provide prompt written notice and use reasonable efforts to mitigate the impact.
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