Force majeure is a term used in contracts to describe events that are beyond the control of both parties and make it impossible to fulfill the terms of the contract. These events are often referred to as “acts of God” or “superior force.”

Examples of force majeure events:

• Natural disasters (e.g., hurricanes, earthquakes, floods)
• Acts of war or terrorism
• Political unrest
• Economic crises
• Pandemic or other contagious diseases
• Strikes or labor disputes
• Transportation disruptions

Elements of a Force Majeure Clause:

• Unforeseeable event: The event must be an unforeseeable event that is beyond the control of both parties.
• Inability to control: The event must make it impossible for one or both parties to fulfill their obligations under the contract.
• No fault: The event must not be caused by the negligence or fault of either party.

Examples of Force Majeure Clauses:

“Either party may terminate this contract if either party is prevented from fulfilling its obligations due to a force majeure event.”

“If either party is unable to perform its obligations due to a force majeure event, then that party shall not be liable for any damages.”

Impact of Force Majeure:

• Contractual obligations: Force majeure events can relieve parties from fulfilling their contractual obligations if they are impossible to fulfill.
• Compensation: Depending on the terms of the contract, parties may be eligible for compensation if they are affected by a force majeure event.
• Rescission: In some cases, parties may have the right to rescind the contract if a force majeure event makes it impossible to fulfill its terms.

Disclaimer:

The information above is for informational purposes only and should not be considered legal advice. It is important to consult with an attorney for specific legal advice.