We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
What is a Force-Majeure Clause and Its Legal Implications?
Definition & Meaning
A force majeure clause is a provision included in contracts that relieves a party from fulfilling their obligations when unforeseen events occur. These events, often referred to as "acts of God," can include natural disasters like floods and earthquakes, as well as uncontrollable occurrences such as wars or terrorist attacks. The purpose of this clause is to protect parties from liability when they cannot perform their contractual duties due to circumstances beyond their control, provided they exercised due diligence to avoid such failures.
Table of content
Legal Use & context
Force majeure clauses are commonly used in various legal contexts, including commercial contracts, real estate agreements, and employment contracts. They serve to define the circumstances under which a party can be excused from performance due to events that could not have been anticipated or controlled. Users can find templates for these clauses in resources like US Legal Forms, allowing them to draft contracts that include appropriate protections against unforeseen events.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A construction company has a contract to complete a building project. If a hurricane strikes and halts construction, the force majeure clause may excuse the company from penalties for delays caused by the storm.
Example 2: A concert venue contracts with a band to perform. If a terrorist attack occurs on the day of the concert, the venue may invoke the force majeure clause to cancel the event without facing legal repercussions. (hypothetical example)
State-by-state differences
Examples of state differences (not exhaustive)
State
Variation
California
Force majeure clauses may be interpreted broadly, including pandemics as a qualifying event.
New York
Courts often require specific language to define what constitutes a force majeure event.
Texas
Force majeure clauses must clearly outline the obligations of each party during such events.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Difference
Force Majeure
Unforeseen events that prevent contract performance.
Focuses on uncontrollable external events.
Impossibility
Performance is impossible due to circumstances.
Can be more subjective; may not include all unforeseen events.
Frustration of Purpose
Contract's main purpose is undermined by unforeseen events.
Focuses on the intent of the contract rather than performance.
Common misunderstandings
What to do if this term applies to you
If you believe a force majeure event affects your contractual obligations, review your contract to identify the force majeure clause and its specific terms. Notify the other party as required and document the event's impact on your ability to perform. For assistance, consider using US Legal Forms' templates to draft the necessary notifications or amendments to your contract. If the situation is complex, consulting a legal professional may be necessary.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.