Force Majeure Clause in a Contract Example

A force majeure clause is a common provision in contracts that covers unforeseeable events that may prevent one or both parties from fulfilling their contractual obligations. These events may include natural disasters, wars, strikes, or other events beyond the control of the parties. In such cases, the force majeure clause can excuse the parties from performing their obligations for a period of time or even terminate the contract.

Here is an example of a force majeure clause in a contract:

“Force Majeure. Neither party shall be liable for any delay or failure to perform its obligations under this Agreement if the delay or failure is due to an event beyond the reasonable control of the affected party, including but not limited to acts of God, war, terrorism, fire, flood, hurricane, pandemic, or other natural disaster, labor strikes, riots, or civil disturbances. The affected party shall promptly notify the other party of the event and use all reasonable efforts to minimize the effects of the event. If the event continues for a period of more than 30 days, either party may terminate this Agreement without liability to the other party.”

In this example, the force majeure clause covers a broad range of events that are beyond the reasonable control of the parties. It allows either party to be excused from performing their obligations if such events occur and continue for more than 30 days. Moreover, the clause requires the affected party to give prompt notice to the other party and to use reasonable efforts to minimize the effects of the event.

It is worth noting that the force majeure clause does not excuse a party`s failure to perform if the event could have been anticipated or avoided. For example, if a party fails to deliver goods because of a shortage of raw materials, it cannot invoke the force majeure clause if it could have secured the materials from other sources or taken steps to prevent the shortage.

In conclusion, a force majeure clause is a critical provision in contracts that can protect the parties from unforeseeable events that may prevent them from fulfilling their obligations. The clause should be drafted carefully to cover a broad range of events, but it should not excuse a party`s failure to perform if the event could have been anticipated or avoided.