To protect your business, ensure supplier contracts meet your business\u2019 needs. Our free Commercial Contracts Checklist will help.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n A force majeure clause<\/a> is a contractual provision that addresses unforeseeable events or circumstances out of parties\u2019 control that prevent a party from fulfilling its contractual obligations. <\/p>\n\n\n\n These events are usually beyond the control of the parties and typically include:<\/p>\n\n The primary purpose of a force majeure clause is to allocate risks associated with unforeseen events between the parties and provide a mechanism for addressing disruptions to contractual performance. Including this clause within your contract can protect your business from facing costly penalties or legal liabilities due to circumstances beyond your control. <\/p>\n\n\n\n However, for a force majeure clause to be effective, it must be clear and certain in its application to the present circumstances. For instance, rent payable in \u201calmost any conceivable circumstances\u201d may constitute a strong enough clause to contract out of due to events like the COVID-19 pandemic.<\/p>\n\n\n\nWhat is a Force Majeure Clause?<\/h2>\n\n\n\n
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Elements of Force Majeure Clauses <\/h2>\n\n\n\n
Identification of force majeure events<\/strong><\/td> The clause defines specific events or circumstances that qualify as force majeure, such as earthquakes, floods, pandemics, or acts of terrorism.<\/td><\/tr> Notice requirements<\/strong><\/td> The clause may specify the procedure for invoking force majeure, including the notification requirements and timelines for providing notice to the other party.<\/td><\/tr> Effects of force majeure<\/strong><\/td> The clause outlines the consequences of a force majeure event, such as the suspension of contractual obligations, extension of deadlines, or contract termination.<\/td><\/tr> Mitigation obligations<\/strong><\/td> Parties may be required to take reasonable steps to mitigate the impact of a force majeure event on contractual performance.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n
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