Construction Contract Force Majeure Clause Example
Definition and meaning
A force majeure clause is a provision in a construction contract that frees both parties from liability or obligation when an extraordinary event or circumstance occurs, preventing one or both from fulfilling their contractual duties. These events may include natural disasters, acts of war, riots, or pandemics. This clause is essential for protecting the interests of both contractors and clients during unforeseen circumstances.
Key components of the form
A well-drafted force majeure clause typically includes:
- Definition of force majeure events: Specifies what events qualify under this clause.
- Notice requirement: Outlines the obligations of the affected party to notify the other party of the force majeure event.
- Mitigation efforts: Describes requirements for the affected party to use reasonable efforts to mitigate the delay.
- Duration of obligation relief: States how long the party is relieved from performance.
- Resumption of obligations: Explains the process for resuming normal performance once the force majeure event has passed.
Legal use and context
In legal terms, the force majeure clause provides a framework for addressing situations that hinder contractual performance due to events outside the control of either party. Courts generally enforce these clauses if they are clearly defined and agreed upon in the contract. The inclusion of a force majeure clause can help prevent disputes and ensure a fair resolution when unexpected events occur, thereby fostering contractual stability.
Who should use this form
This clause is beneficial for:
- Construction contractors looking to protect themselves from liability due to uncontrollable events.
- Property owners desiring assurance that they will not be unfairly penalized for contractor delays caused by external factors.
- Legal professionals drafting or reviewing construction contracts to ensure adequate risk management.
Benefits of using this form online
Utilizing online forms for creating a force majeure clause offers several advantages:
- Accessibility: Forms can be easily downloaded and completed from anywhere, at any time.
- Guidance: Online templates often come with detailed instructions, making the process straightforward even for users with limited legal experience.
- Efficiency: Online forms streamline the drafting process, allowing users to create customized clauses quickly.
- Updates: Online resources are regularly updated to reflect current laws and regulations, ensuring your clause is compliant.
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FAQ
Including these points should ensure your force majeure notice will constitute valid notice under your contract.Identify the force majeure event.Explain how the force majeure event impacts performance.Identify the relief the force majeure notice seeks.Include adequate assurances.Do not limit rights.More items...?
If by reason of Force Majeure, either party hereto shall be rendered unable wholly or in part to carry out its obligations under this Agreement then such party shall give notice and fully particulars of Force Majeure in writing to the other party within a reasonable time after occurrence of the event or cause relied
No party shall be liable or responsible to the other party, nor be deemed to have defaulted under or breached this Agreement, for any failure or delay in fulfilling or performing any term of this Agreement (except for any obligations to make payments to the other party hereunder), when and to the extent such failure or
Examples of events that might trigger a force majeure clause into effect include a declaration of war, a disease epidemic, or a hurricane, earthquake, or other natural disaster events that fall under the legal term, act of God.
Force majeure examplesWar, riots, earthquakes, hurricanes, lightning, and explosions, for example, are force majeure events. The term also includes energy blackouts, unexpected legislation, lockouts, slowdowns, and strikes.
