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Force Majeure

Force Majeure

Force majeure is a contractual clause that limits liability for unanticipated, overwhelming events preventing fulfillment of obligations.

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Definition

Force majeure refers to an overwhelming, unanticipated event that prevents one or both parties from fulfilling contractual obligations, often included as a clause in contracts to limit liability.

Purpose

The purpose of a force majeure clause is to protect parties from liability or penalties when extraordinary events, such as natural disasters, wars, or strikes, impede contract performance.

Examples of Use

  • A construction contract may include a force majeure clause to protect the builder from delays caused by hurricanes or earthquakes.
  • Event planners might invoke force majeure if a scheduled event is canceled due to an unforeseen pandemic.

Related Terms

  • Act of God: A natural event beyond human control, such as a flood or earthquake, often cited in legal contexts.
  • Contractual Liability: The obligations and responsibilities outlined in a contract that parties are expected to fulfill.
  • Impossibility of Performance: A legal doctrine that releases parties from their obligations when performance becomes objectively impossible.

Notes

Force majeure clauses must be carefully drafted to specify which events are covered and the procedures for notification and resolution. The interpretation of these clauses can vary by jurisdiction.

Related Terms