What are some examples of force majeure clauses in contracts?

What are some examples of force majeure clauses in contracts?

Force majeure clauses are provisions that free parties from liability or obligation when an extraordinary event occurs. Examples include natural disasters, war, or pandemics.

Can you give me a specific example of a force majeure clause?

Sure! A typical force majeure clause might state: 'Neither party shall be liable for any failure to perform its obligations under this agreement if such failure results from events beyond its reasonable control, including but not limited to acts of God, war, or government restrictions.'

How do these clauses protect businesses?

They protect businesses by allowing them to avoid penalties for non-performance due to unforeseen events, ensuring they aren't held liable for circumstances beyond their control.

Are there any limitations to force majeure clauses?

Yes, limitations can include the requirement to notify the other party of the event, the duration of the force majeure, and specific events that are covered.