force majeure

Contract LawLegal glossary term

Legal Definition

Force majeure is a contractual concept that excuses one or both parties from certain obligations under a contract when extraordinary events beyond their control prevent the performance of the obligation. It typically applies when an event, such as a natural disaster, war, strike, or other unforeseen circumstance, makes the performance of a contractual duty impossible or commercially impracticable.

Plain-English Translation

Imagine a rule in a contract that says if something really big and unexpected happens—like a hurricane or a major flood—that stops you from doing what you promised to do. It means the event is so outside of your control that it excuses the delay or failure to meet the obligation.

Context in Contracts

It is crucial in legal documents to establish valid grounds for non-performance, providing a contractual basis for excusing delays, suspending obligations, or terminating the agreement due to unforeseen circumstances.

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01

A contract where the obligation to deliver goods is excused because a sudden earthquake destroyed the production facility.

02

A lease agreement where rent payment obligations are suspended due to a widespread strike that makes normal operation impossible.

Document context

How force majeure shows up in legal documents

What is it?

A contractual provision that formally excuses one or both parties from performing their obligations under a contract when an event beyond their control prevents performance, such as a natural disaster, war, strike, or other unforeseen circumstance.

Why does it matter?

It is crucial in legal documents to establish valid grounds for non-performance, providing a contractual basis for excusing delays, suspending obligations, or terminating the agreement due to unforeseen circumstances.

When does it matter?

When an event makes performance impossible or commercially impracticable under a contract, often invoked by one party to argue that the obligation was excused due to external, unavoidable circumstances.

Where is it usually seen?

In contracts, legal claims, statutes, and regulatory frameworks where parties seek to justify non-performance or delay in fulfilling contractual duties.

Who is affected?

The parties involved in a contract who are seeking to argue that an event beyond their control justifies the suspension of obligations or termination of the agreement.

How does it work?

It works by demonstrating that a specified event (like a natural disaster) prevents performance, thereby legally excusing one party from fulfilling the contractual duty under specific terms.

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Wikipedia

Force majeure

In contract law, force majeure ( FORSS mə-ZHUR; French: [fɔʁs maʒœʁ]) is a common clause in contracts which essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a...

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