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Negotiating and Drafting the Force Majeure Provision

Orange California Negotiating and Drafting the Force Majeure Provision

Name: Orange California Negotiating and Drafting the Force Majeure Provision
Brand: US Legal Forms
Rating: 4.73 (300 reviews)

Category:

Contracts - Clauses - Force Majeure

State:

Multi-State

County:

Orange

Control #:

US-ND1103

Format:

Instant download

Description

This form provides boilerplate Force Majeure contract clauses that outline the definition and effect of a Force Majeure event on a contract agreement. Several different language options are included to suit individual needs and circumstances.

How to fill out Orange California Negotiating And Drafting The Force Majeure Provision?

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FAQ

Generally speaking, for events to constitute force majeure, they must be unforeseeable, external to the parties of the contract, and unavoidable. These concepts are defined and applied differently depending on the jurisdiction.

Force majeure events generally can be divided into two basic groups: natural events and political events. These may include earthquakes, floods, fire, plague, Acts of God (as defined in the contract or in applicable law) and other natural disasters.

For example, parties in the United States have used the COVID-19 pandemic as a force majeure in an attempt to escape contractual liability by applying the elements of an (1) unforeseeable event, (2) outside of the parties' control, that (3) renders performance impossible or impractical.

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. 04/26/2019 (Cheetah Mobile Inc.)

Force majeure examples War, riots, earthquakes, hurricanes, lightning, and explosions, for example, are force majeure events. The term also includes energy blackouts, unexpected legislation, lockouts, slowdowns, and strikes.

There are four necessary components of a force majeure clause: It must define the breach for which a promisor seeks to be excused. It must define the force majeure event itself. It must require (and define) the causal connection between these two. It must explain what will happen if performance is excused.

Force majeure is a provision in a contract that frees both parties from obligation if an extraordinary event directly prevents one or both parties from performing.

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Orange California Negotiating and Drafting the Force Majeure Provision

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How do you declare force majeure?

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What is force majeure and give 3 examples?

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Interesting Questions

What is a force majeure provision?

Why is a force majeure provision important when negotiating and drafting contracts?

What events are typically covered by a force majeure provision?

Can force majeure provision cover pandemics like COVID-19?

Is it important to clearly define force majeure events in the provision?

Can a force majeure provision relieve parties from all obligations?

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