Construction Contract Force Majeure Clause Example In Arizona
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The definition of "force majeure" generally includes "risks beyond the reasonable control of a party, incurred not as a product or result of the negligence of the afflicted party, which have a materially adverse effect on the ability of such party to perform its obligations".
Typically, the clause will define the specific events or circumstances that qualify as force majeure, providing a non-exhaustive list of examples. These examples often encompass natural disasters, acts of God, riots, embargoes, or any other events that are considered extraordinary and beyond the control of the parties.
Force majeure leave. If you have a family crisis, you have a right to limited time off work. This is called force majeure leave. You may need to take force majeure leave for an urgent family reason, such as the unexpected injury or illness of a 'close family member'.
Commonly referred to as “acts of God”, force majeure events are unforeseeable, exceptional or out with the control of contracting parties. Examples include natural disaster, terrorism, industrial strike action, fire and pandemic/epidemic events such as Covid-19.
Any events that are within the reasonable control of a party, occur as a result of negligence by one of the contracting parties, or are explicitly listed as exceptions in the force majeure clause, will not be deemed a force majeure event.
If a contract is silent on force majeure or if the event does not meet the definition of force majeure under the parties' contract, a party's performance may still be excused in certain circumstances under the doctrine of commercial impracticability.
Parties seeking to rely on force majeure are required to show and evidence (i) that the event is unforeseeable and inevitable; (ii) that the event is out of the risks and liabilities under the contract; and (iii) the impact of such event on the performance of their obligations.
Force majeure events are usually defined as certain acts, events or circumstances beyond the control of the parties, for example, natural disasters or the outbreak of hostilities.
Give Notice, If Necessary. Many clauses require the parties to give notice of a force majeure declaration a specific number of days before the event or within a certain time frame once the event is triggered. Make sure you're following terms and promptly give notice.
Force majeure incidents typically include wars, natural disasters (e.g., earthquakes), terrorist attacks, epidemics, and civil unrest, such as riots. The concept of force majeure originated in French civil law as part of the Napoleonic Code and has been incorporated into the common law and civil law of many countries.
