What is the impact of force majeure on businesses?
Force majeure refers to unforeseen events that prevent parties from fulfilling contracts. It can significantly impact businesses by allowing them to suspend or terminate obligations without liability.
Can you give examples of force majeure events?
Sure! Examples include natural disasters like earthquakes, pandemics, or government actions like lockdowns that disrupt normal operations.
How can businesses prepare for force majeure situations?
Businesses can prepare by including force majeure clauses in contracts, developing contingency plans, and ensuring adequate insurance coverage.
What should a business do if a force majeure event occurs?
They should assess the situation, communicate with stakeholders, review contracts, and consult legal advice to understand their rights and obligations.
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