Contracts contain many different clauses and terms, each of which serves to protect one or both parties in the contract. One type of clause you may find is a force majeure provision.
Force majeure is a French term that means superior force, which means that these clauses protect both parties from unforeseen and uncontrollable circumstances that can disrupt one’s ability to meet the terms of the contract.
When does a force majeure contract go into effect?
Each contract that contains force majeure provisions will have specific terms that determine when it applies. In some cases, this is relayed as a list of qualifying events, such as legal changes, strikes or natural events.
The force majeure can be invoked by the party if the event was out of their control, they couldn’t see the event would happen and the event directly led to their inability to fulfill their contractual terms. The inability to fulfill the terms might be delayed so they can be fulfilled at a later time or permanently excused.
It’s critical that both parties fully understand their obligations under the contract. If there is a force majeure in place, each term must be fully understood. Without a force majeure, other components of the contract may govern what happens if obligations can’t be met.
Because contracts can be complex and intricate, it’s a good idea for anyone entering into a contract to have someone familiar with contract law to review it. This can help to ensure they understand their obligations and the duties of the other party.