what is a force majeure

what is a force majeure

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In contract law, force majeure is a common clause in contracts that frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, epidemic, or sudden legal change, prevents one or both parties from fulfilling their obligations under the contract. Here are some key points about force majeure:

  • Force majeure is a French term that literally means "greater force".
  • Force majeure events are usually defined as certain acts, events, or circumstances beyond the control of the parties, such as natural disasters, the outbreak of hostilities, or man-made diseases.
  • A force majeure clause typically excuses one or both parties from performance of the contract in some way following the occurrence of such events.
  • For events to constitute force majeure, they must be unforeseeable, external to the parties of the contract, and unavoidable.
  • Force majeure clauses are among a number of defenses that can be asserted in response to an action for nonperformance, such as the general defense of impossibility and frustration of.

It is important to note that the interpretation and application of force majeure clauses may vary depending on the jurisdiction and the specific terms of the contract.

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