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Contract for the Lease and Mandatory Purchase of Real Estate -...

Real Estate Force Majeure Clause In Riverside

Q: What is included in force majeure clause?

A &quot;force majeure&quot; clause (French for &quot;superior force&quot;) is a contract provision that relieves the parties from performing their contractual obligations when certain circumstances beyond their control arise, making performance inadvisable, commercially impracticable, illegal, or impossible.

Category:

Landlord Tenant - Residential Leases - Purchase Options

State:

Multi-State

County:

Riverside

Control #:

US-00120

Format:

Instant download

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Description

The Real Estate Force Majeure Clause in Riverside is a critical component of the Contract for the Lease and Mandatory Purchase of Real Estate, providing protection for parties if unforeseen events prevent them from fulfilling their obligations under the contract. It ensures that in instances of natural disasters, acts of terrorism, or other extraordinary circumstances, neither party may be held liable for delays or failures to perform. The form highlights the need for both the Seller and Purchaser to acknowledge such conditions and outlines the procedures for notifying the other party. Attorneys, partners, owners, associates, paralegals, and legal assistants will find this clause useful in understanding their rights and responsibilities, particularly in drafting or reviewing agreements. Additionally, it allows the parties to plan for potential disruptions, thereby reducing the risk of litigation. Users should complete all sections of the form meticulously, paying close attention to the lead-based paint disclosures required for properties built before 1978. Proper filling and editing instructions are provided to guide them through necessary disclosures and compliance steps, ensuring that the transaction proceeds smoothly under the framework established by the force majeure clause.

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FAQ

Because the concept is foreign, lawyers who review or draft contracts governed by U.S. law should start with the assumptions that 1) principles of force majeure will not be implied in a contract that does not expressly provide for them, and 2) U.S. courts will interpret and apply force majeure provisions narrowly.

A Standard Clause for use in commercial real estate agreements that permits the parties to allocate the risk of certain events beyond the control of the parties (known as force majeure events), such as acts of God, natural disasters, epidemics, pandemics, government acts, and labor strikes.

In real estate, force majeure refers to a contractual clause that allows parties to suspend or terminate their obligations when certain events beyond their control occur, making performance inadvisable, commercially impracticable, illegal, or impossible.

For events to constitute the use of force majeure, they must be unforeseeable, external to contract parties, and unavoidable. Force majeure means “greater force” and is related to an act of God, an event for which no party can be held accountable.

A "force majeure" clause (French for "superior force") is a contract provision that relieves the parties from performing their contractual obligations when certain circumstances beyond their control arise, making performance inadvisable, commercially impracticable, illegal, or impossible.

Either Party shall be excused from performance and shall not be in default in respect of any obligation hereunder to the extent that the failure to perform such obligation is due to a Natural Force Majeure Event.

The major difference in such cases is that, without a force majeure clause, the party that wants to be released from contract obligations has the burden of proof, which means that this party must prove their argument is correct. If the other contracting parties do not agree, this could lead to litigation.