What is a "Force Majeure" clause in a contract by Attorney Steve®
Channel: Steve Vondran
Date: 2023-04-06

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WHAT IS A FORCE MAJEURE CLAUSE IN A CONTRACT?

Contracts are the backbone of business agreements. They outline the terms and responsibilities of all parties involved. However, unexpected events, such as natural disasters or pandemics, can disrupt these agreements. That's why a force majeure clause is becoming increasingly common in contracts. This clause allows for the suspension or termination of the contract if events beyond anyone's control occur. It protects both parties, but also provides a legal way to breach the contract, if necessary. In this way, the force majeure clause serves as an important risk management tool. It's essential for businesses to carefully consider whether to include it in their contracts, and how to word it to ensure maximum protection in the event of unforeseeable circumstances.