This office lease form states the tenants obligations to pay rent and perform all the covenants and agreements of the lease even when the landlord is unable to perform obligations under the lease as a result of any natural causalities.
South Dakota Standard Force Majeure Clause
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Multi-State
Control #:
US-OL1102A2A
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Word;
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How to fill out Standard Force Majeure Clause?
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FAQ
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.
The concept of force majeure is derived from civil law and is not fully recognised under English common law, therefore it should always be fully defined.
performing party may use a force majeure clause as excuse for nonperformance for circumstances beyond the party's control and not due to any fault or negligence by the nonperforming party. However, mere impracticality or unanticipated difficulty is not enough to excuse performance.
One of the key aspects of negotiating force majeure clauses is to define the terms and conditions that will trigger and govern the application of the clause. You should be clear and specific about what constitutes a force majeure event, and avoid vague or broad terms that may create ambiguity or disputes.
Generally speaking, an act of God includes acts of nature only. Force majeure, meanwhile, includes both acts of nature and extraordinary circumstances due to human intervention. Examples of force majeure include an outbreak of a contagious disease, government lockdowns, or war.
What are the three elements of force majeure? In general, for an event to trigger a force majeure clause, it must be unforeseeable, external to the parties of the contract, and serious enough that it renders it impossible for the party to perform its contractual obligations.
If no force majeure clause exists, then the doctrine of frustration may apply where unforeseen events happen and it is important for all businesses to understand how the concept works and when it is appropriate to use it.
The New Normal As extreme weather events occur with increasing frequency, traditional force majeure concepts are causing parties to reconsider what is foreseeable. Determining the foreseeability of an event is a fact-driven analysis that often involves consulting outside sources.
