Commercial agreements generally contain a force majeure clause. Broadly, a force majeure clause relieves a party from strict compliance with its contractual obligations where a force majeure event occurs, and any such non-performance will not constitute a breach of contract.
Either Party shall be excused from performance and shall not be in default in respect of any obligation hereunder to the extent that the failure to perform such obligation is due to a Natural Force Majeure Event.
Force majeure is a contractual clause intended to “protect the parties from events outside normal business risk 4.” The clause may be used to manage the risk of unforeseeable future events that could impact a party's ability to complete its contractual obligations.
These may include earthquakes, floods, fire, plague, Acts of God (as defined in the contract or in applicable law) and other natural disasters. These are events which are not within the control of the Host Government.
Sample Language 3 The Parties hereby acknowledge that while current events related to the current epidemic/pandemic are known, future impacts of the outbreak are unforeseeable and shall be considered a Force Majeure event to the extent that they prevent the performance of a Party's obligations under this Agreement.
Neither party will be liable for inadequate performance to the extent caused by a condition (for example, natural disaster, act of war or terrorism, riot, labor condition, governmental action, and Internet disturbance) that was beyond the party's reasonable control.
Nevertheless, THE FORCE MAJEURE EVENT has severely limited _____________'s ability to PERFORM OBLIGATIONS UNDER THE CONTRACT to the point where invoking force majeure is necessary. ingly, we write to request NATURE OF RELIEF SOUGHT due to the unforeseen impact of THE FORCE MAJEURE EVENT.
Examples of events that might trigger a force majeure clause into effect include a declaration of war, a disease epidemic, or a hurricane, earthquake, or other natural disaster events that fall under the legal term, “act of God.”
Termination — In cases where the force majeure event is severe and long-lasting, the contract may allow for its termination, meaning the parties are released from their obligations entirely because the event has made it impossible or impractical to continue with the contract.
For events to constitute the use of force majeure, they must be unforeseeable, external to contract parties, and unavoidable. Force majeure means “greater force” and is related to an act of God, an event for which no party can be held accountable.