What is a force majeure clause in contracts?

What is a force majeure clause in contracts?

A force majeure clause is a provision in contracts that frees both parties from liability or obligation when an extraordinary event occurs.

Can you give me examples of events that might trigger this clause?

Sure! Examples include natural disasters like earthquakes, floods, or events like war, terrorism, or pandemics.

How does it affect the obligations of the parties involved?

It typically suspends the obligations of the parties during the event, allowing them to avoid penalties for non-performance.

Are there any limitations to a force majeure clause?

Yes, it usually must be clearly defined in the contract, and the event must be beyond the control of the parties.