Force Majeure Contract Sample: What You Need to Know
A force majeure clause is an important element of any contract, as it outlines the circumstances under which one or both parties may be released from their contractual obligations due to unforeseen events. These events are typically referred to as “acts of God” or “force majeure” events, and can include natural disasters, riots, wars, terrorist attacks, government actions, and other major occurrences beyond the control of the parties.
When creating a force majeure clause in a contract, it is important to use clear and specific language that outlines what constitutes a force majeure event and how it should be handled. This can help prevent disputes and ensure that both parties are aware of their rights and responsibilities in the event of a force majeure situation.
Here is a sample force majeure clause that can be used in a contract:
“Neither party shall be liable for any failure or delay in performing its obligations under this agreement if such failure or delay is caused by circumstances beyond its reasonable control, including but not limited to acts of God, fire, flood, war, terrorism, governmental action, labor disputes, power failures, and internet disturbances. In the event of such a force majeure event, the party affected shall promptly notify the other party in writing and shall use its best efforts to resume performance of its obligations as soon as practicable.”
This clause provides a broad definition of what constitutes a force majeure event, including both natural and man-made disasters, and leaves room for additional circumstances to be added if needed. It also outlines the steps that should be taken in the event of a force majeure event, including prompt notification and efforts to resume performance as soon as possible.
However, it is important to note that force majeure clauses are not absolute and may be subject to interpretation by courts. Therefore, it is important to consult with a legal expert to ensure that your force majeure clause is legally enforceable and protects your rights and obligations in the event of a force majeure situation.
In conclusion, a force majeure clause is an essential element of any contract, as it helps ensure that both parties are protected in the event of unforeseen circumstances. By using clear and specific language and consulting with a legal expert, you can create a force majeure clause that is effective and enforceable in any situation.