The force-majeure clause in a contract determines the party responsible in the event of an unforeseen circumstance that renders the fulfilment of the agreed-upon obligations impossible. Such circumstances may include natural disasters or wars that were unforeseeable and uncontrollable. The clause serves to safeguard both parties from unfair consequences in the event of uncontrollable events.
A force-majeure clause is a contractual provision that addresses situations where performance becomes impossible or impractical due to an unforeseeable event or circumstance beyond the control of the parties involved. For instance, if a company is obligated to deliver goods to a customer but is hindered by a natural disaster like a hurricane or earthquake, the force-majeure clause would be invoked. This clause would outline the course of action in such a scenario, such as whether the contract is terminated or if the delivery is postponed until the situation is resolved. Another example could involve a contract between a performer and a venue for a concert. If the venue is destroyed by fire or another unforeseeable event, the force-majeure clause would determine the fate of the contract, such as whether the concert is rescheduled or canceled. The force-majeure clause is crucial as it helps to allocate risk between the contracting parties. It ensures that neither party is held accountable for events beyond their control and safeguards them from any resulting losses.
A force majeure clause is a provision in a contract that excuses a party from performing its contractual obligations in the event of unforeseen circumstances or events beyond their control.
Common events covered under a force majeure clause include natural disasters, acts of terrorism, war, strikes, government actions, and epidemics/pandemics.
Yes, a force majeure clause can be included in various types of contracts, such as employment agreements, lease agreements, construction contracts, and supply agreements.
No, a force majeure clause is not automatically included in every contract. It must be specifically included and agreed upon by the parties during the contract negotiation and drafting process.
No, a force majeure clause cannot be invoked retroactively. It can only be invoked for events that occur after the contract is signed and the force majeure clause is in effect.
Invoking a force majeure clause typically excuses the affected party from performing its contractual obligations for the duration of the force majeure event. It may also provide for extensions of time or termination of the contract, depending on the specific language of the clause.
Yes, a force majeure clause can be waived or modified if both parties agree to do so. This can be done through a written amendment or addendum to the contract.
Yes, in most cases, the party invoking the force majeure clause must demonstrate that the event directly caused their inability to perform their contractual obligations. This may require providing evidence and documentation supporting the claim.
Yes, a force majeure clause can be used as a defence in a lawsuit if the non-performing party can prove that the force majeure event prevented them from fulfilling their contractual obligations.
If a contract does not have a force majeure clause, the parties may still have legal remedies available to them, such as invoking the doctrine of frustration of purpose or impossibility of performance. However, the availability and applicability of these remedies may vary depending on the jurisdiction and specific circumstances of the case.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
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