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Force majeure is a contract clause that excuses performance when an extraordinary event prevents it. Learn what events qualify as force majeure, how courts interpret them, and how they differ from other defenses.
- Definition of Force Majeure
- Events Considered Force Majeure
- Force Majeure in Contract Negotiations
- Acts Not regarded as Force Majeure
- Example Force Majeure Clause
- Force Majeure vs. Impossibility
- Force Majeure and The “Hell Or High Water” Clause
- Related Legal Terms and Issues
Noun.Greater, superior, or irresistible force.Noun.An event that cannot be reasonably anticipated or controlled.Noun.An unexpected, disruptive event that may excuse a party from performing duties under a contract.A force majeure clause in a contract essentially releases both parties from obligation or liability when a circumstance beyond the parties’ control occurs preventing fulfillment of the contract. Such circumstances include war, riot, crime, or strike, as well as any event considered an “act of God,” such as an earthquake, hurricane, tornado, floodin...
Because force majeure relieves a party of its duties under a contract, the issue of specifying exactly what may be considered an event under force majeure is critical in negotiating the contract. It may be important for a party to resist efforts of the other party to include events that, practically speaking, should be at that party’s risk. For exa...
While the interpretation of force majeure may be stretched to cover such issues as labor strikes and breakdown of vital machinery, either of which may temporarily excuse a party from performance, such events as bad weather, funerals, sporting events, or other normal life events are not valid excuses under the law. The reasoning behind this is that ...
While the specific events included in a force majeure contract clause are up to the parties, there are a number of events that are commonly used. When creating such a clause it is important to not only define the events covered, but what will happen in the event one of the events occurs, which party can suspend performance or terminate the agreemen...
In contract law, “impossibility” provides a party with an excuse for failing to perform duties under a contract due to a change in circumstances that makes performance actually impossible to accomplish. For example, if Mr. Jones contracts to pay contractor Joe to paint his house on June 1st, but Mr. Jones’ house burns down on May 20th, both parties...
A clause sometimes included in a contract for the purpose of limiting the use of force majeureand impossibility excuses is the “Hell or high water” clause. Named from the long-used colloquial phrase, the clause specifies that certain duties under the contract must be performed “come Hell or high water,” which is to say, regardless of any difficulti...
Contract– An agreement between two or more parties in which a promise is made to do or provide something in return for a valuable benefit.Performance– The fulfillment of a promise or obligation as required by the terms of a contract.Jun 10, 2024 · Force majeure is a contract clause that removes liability for catastrophic, unforeseen events that prevent participants from fulfilling obligations.
- Marshall Hargrave
- 1 min
Force majeure in any given situation is controlled by the law governing the contract, rather than general concepts of force majeure. Contracts often specify what constitutes force majeure via a clause in the agreement.
Force majeure is a French term that means superior or irresistible force. It is also used in business contracts to refer to uncontrollable events that prevent a party from fulfilling its obligations. Learn more about the word history, usage, and related terms.
Learn what a force majeure clause is and how it can excuse a party from a contract in case of unforeseeable events. See examples of force majeure clauses in different types of contracts and how they apply to COVID-19.
May 16, 2024 · Force majeure is a legal concept that frees parties from certain obligations in a contract or treaty due to an extraordinary and unforeseen event. Learn about the origin, types, and applications of force majeure in commercial and international law, with examples and facts.
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