Force Majeure Contract Example

When drafting a contract, it is important to consider the possibility of unforeseeable events that may disrupt or prevent the performance of the contract. This is where a force majeure clause comes in. A force majeure clause is a provision that excuses a party’s nonperformance of its obligations under the contract in the event of certain unexpected circumstances, such as acts of God, war, terrorism, natural disasters, and other events beyond the parties’ control.

Here is an example of a force majeure clause in a contract:

Force Majeure Clause

In the event that a party is prevented from performing its obligations under this agreement due to circumstances beyond its control, including but not limited to acts of God, war, terrorism, natural disasters, governmental regulations, and other events beyond the reasonable control of the party (“Force Majeure Event”), then such party shall be excused from performance of its obligations hereunder to the extent and for the duration of such Force Majeure Event.

The party affected by the Force Majeure Event shall promptly notify the other party of the occurrence of the Force Majeure Event and take reasonable steps to mitigate the effects of the Force Majeure Event. In the event that the Force Majeure Event lasts for a period of more than thirty (30) days, then either party may terminate this agreement upon written notice to the other party.

This force majeure clause provides a clear and concise explanation of the circumstances under which a party’s nonperformance may be excused. It also specifies the steps that the affected party must take in order to mitigate the effects of the Force Majeure Event, as well as the circumstances under which either party may terminate the agreement if the Force Majeure Event lasts for a prolonged period.

It is important to note that force majeure clauses are not always included in contracts and their interpretation can vary depending on the jurisdiction and the specific language used in the clause. Therefore, it is essential to consult with legal counsel to ensure that the force majeure clause in your contract is properly crafted to meet the needs of your business.

In conclusion, a force majeure clause is a crucial provision in any contract that protects parties from unexpected events that may prevent them from fulfilling their obligations. By including a well-drafted force majeure clause in your contracts, you can ensure that your business is protected from unforeseeable circumstances that are beyond your control.