Construction Contract Force Majeure Clause Example In Dallas
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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.
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.
Many contracts include a "force majeure" or "act of God" clause. A force majeure clause is a part of a contract that says if something unexpected happens, one or both parties may be excused from doing what the contract says they should do.
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.
There are generally three essential elements to force majeure: • tt can occur with or without human intervention • it cannot have reasonably been foreseen by the parties • It was completely beyond the parties' control and they could not have prevented its consequences.
Related Content. 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.
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.
The Act of God Defense, sometimes called an “Act of God Criminal Defense” or “God Defense,” is based on the idea that natural disasters and other uncontrollable events can remove or lessen liability. These “acts of God” include natural events like lightning strikes, heavy rain, and other severe weather events.
The force majeure clause is a contract provision that relieves involved parties from performing their contract obligations if extreme circumstances or “major unforeseen events” outside of their control arise that would make performing these obligations impossible, inadvisable, or dangerous.
